Announcement on the Company's and Subsidiaries' Application for Comprehensive Credit Facilities from Banks and Acceptance of Related Party Guarantees
Wuhan Huakang Century Clean Technology Co., Ltd. (hereinafter referred to as "the Company") held the fourth meeting of the third board of directors on March 20, 2026, where it reviewed and approved the proposal regarding the application for comprehensive credit facilities from banks and the acceptance of related party guarantees. Related directors abstained from voting. This related party transaction was reviewed by the independent directors at a special meeting prior to submission to the board and was agreed upon by all independent directors. The sponsor institution issued a non-objection verification opinion, and the proposal is subject to shareholder approval. The relevant details are announced as follows:
I. Overview of the Related Party Transaction
In accordance with the Company's development strategy, to meet the funding needs of the Company and its subsidiaries (consolidated subsidiaries), and to ensure stable operations, the Company and its subsidiaries plan to apply for comprehensive credit facilities from banks and other financial institutions not exceeding RMB 400 million (inclusive). The Company's controlling shareholders and actual controllers, Mr. Tan Pingtao and Ms. Hu Xiaoyan, intend to provide joint liability guarantees for the application without requiring counter-guarantees or paying guarantee fees. The credit facilities will primarily include, but are not limited to, working capital loans, bank acceptance bills, letters of guarantee, notes, opening international letters of credit, domestic letters of credit, and trade financing. The actual financing amount will depend on the Company's operational funding needs. Guarantee methods include, but are not limited to, guarantees from the controlling shareholders, fixed asset mortgage guarantees, accounts receivable pledges, and patent pledges. The specific guarantee period will be determined by the guarantee agreements signed with relevant banks. The application period for the credit facilities is two years from the date of approval by the shareholders' meeting. During the credit period, the Company and all board members guarantee the truthfulness, accuracy, and completeness of the information disclosed, without false records, misleading statements, or significant omissions.
The credit limit can be reused, and the actual credit limits from different banks can be adjusted within the total limit. Individual financing amounts within the credit limit do not need to be reported to the board or shareholders' meeting for approval. The board of directors proposes that the shareholders' meeting authorize the chairman of the Company or their authorized representative to sign all legal documents related to the credit facilities within the approved limit, and to select banks based on cost and creditworthiness.