Overview of the Guarantee Situation
According to the entrusted guarantee contract signed between Tianjin Kaifa Electric Co., Ltd. (hereinafter referred to as "the Company" or "Kaifa Electric" or "Party C") and Tianjin Huakai Electric Co., Ltd. (hereinafter referred to as "Tianjin Huakai" or "Party A"), Tianjin Huakai has applied for financing loans not exceeding RMB 10 million from the Tianjin Branch of the Industrial and Commercial Bank of China. The Company provides a counter-guarantee to Tianjin Huakai based on its equity stake in Tianjin Huakai, and Mr. Kong Xiangzhou, the legal representative of Tianjin Huakai, provides a joint liability counter-guarantee. Recently, the Company signed the "Guarantee Counter-Guarantee Contract" and its attachments with Tianjin Huakai and the guarantee company, providing a counter-guarantee for Tianjin Huakai's RMB 10 million loan based on its equity ratio.
Approval of Guarantee Amount
On April 22, 2026, the Company held the 21st meeting of the sixth board of directors, and on May 14, 2026, the annual shareholders' meeting for 2025 approved the proposal on providing guarantees for subsidiaries in 2026. The Company provides guarantees for Tianjin Huakai to apply for comprehensive credit limits from banks and other financial institutions, with a guarantee amount not exceeding RMB 120 million, to meet the daily production and operational needs of the subsidiary. After the guarantee takes effect, the guaranteed amount provided by the Company for Tianjin Huakai in 2026 is RMB 4.9711 million, with an available guarantee amount not exceeding RMB 115.0289 million. As of the date of this announcement, the actual guarantee amount provided by the Company for Tianjin Huakai is RMB 34.7706 million.