Overview of Guarantees
On April 9, 2026, the company held the third meeting of the fourth board of directors, which approved the proposal regarding the estimated external guarantee limit for 2026. To meet the funding needs of subsidiaries included in the consolidated financial statements, the company plans to provide guarantees for its wholly-owned subsidiaries, Zhejiang Xindun Automotive Technology Co., Ltd. (hereinafter referred to as "Zhejiang Xindun"), Songyuan (Anhui) Automotive Safety Systems Co., Ltd. (hereinafter referred to as "Anhui Songyuan"), and Hefei Songyuan Automotive Technology Co., Ltd. (hereinafter referred to as "Hefei Songyuan") when they apply for credit from business partners (including but not limited to banks, financial institutions, and other business partners) for operational needs (including but not limited to performance guarantees and product quality guarantees). The forms of guarantees include but are not limited to credit guarantees (including general guarantees, joint liability guarantees, etc.), mortgage guarantees, pledge guarantees, or a combination of various guarantee methods. The total estimated guarantee limit is expected to not exceed RMB 2 billion. The company may adjust the guarantee limits among eligible guarantee objects (including newly added subsidiaries in the future) within the above limit based on actual conditions. However, for guarantee objects with a debt-to-asset ratio exceeding 70%, the guarantee limit can only be obtained from other guarantee objects with a debt-to-asset ratio exceeding 70%. The actual loan and guarantee amounts, terms, and rates will be determined through negotiation between the company and relevant subsidiaries with financing institutions within the above limits, and relevant guarantee matters will be subject to the formally signed guarantee documents. The duration of the above guarantee limit is from the date of approval by the shareholders' meeting until the resolution of the next annual shareholders' meeting regarding the estimated guarantee limit for the following year is passed. This limit can be used repeatedly within the authorization period. The board of directors requests the shareholders' meeting to authorize the chairman to sign relevant legal documents on behalf of the company and authorize the management to handle related matters. The actual guarantee amount will be based on the final signed guarantee contract. According to the relevant provisions of the Shenzhen Stock Exchange Growth Enterprise Market Listing Rules, the Self-Regulatory Guidelines No. 2 for Listed Companies on the Growth Enterprise Market, and the Articles of Association, this estimated guarantee limit must be submitted to the shareholders' meeting for approval.
Estimated Guarantee Limit
The total external guarantee limit for 2026 is estimated to not exceed RMB 2 billion, with specific details as follows: