Baoding Dongli Machinery Manufacturing Co., Ltd. (hereinafter referred to as "the Company" or "Dongli Machinery") held the 19th meeting of the 4th Board of Directors on March 30, 2026, where it reviewed and approved the proposal regarding the Company's and its wholly-owned subsidiary's application for financing from banks and provision of external guarantees. This proposal is subject to approval at the Company's 2025 annual shareholders' meeting. The relevant details are announced as follows:
I. Overview of the Company's and Wholly-Owned Subsidiary's Application for Financing and External Guarantees
To promote further business development and meet the funding needs for production and operations, the Company and its wholly-owned subsidiary plan to apply for financing from banks not exceeding RMB 500 million in 2026. The types of financing include but are not limited to working capital loans, medium and long-term loans, project loans, foreign currency loans, bank acceptance bills, guarantees, letters of credit, bill discounts, internal guarantees for external loans, trade financing, and supply chain financing. The specific cooperating banks, final financing amounts, and methods will be further negotiated with the relevant banks and confirmed by formally signed agreements. The main guarantee methods will include: pledging intangible assets and the parent company guaranteeing its wholly-owned subsidiary, with Dongli Machinery guaranteeing a total amount not exceeding RMB 360 million for wholly-owned subsidiaries with a debt-to-asset ratio not exceeding 70% (this amount includes guarantees approved in previous years that are still within the guarantee period), and a total amount not exceeding RMB 100 million for wholly-owned subsidiaries with a debt-to-asset ratio exceeding 70%. The validity period for the application for financing and guarantee amounts is 12 months from the date of approval by the shareholders' meeting, and the financing amount can be reused within the financing period.
II. Expected Guarantee Amounts
- Guarantee Subject: Baoding Dongli Machinery Manufacturing Co., Ltd.
- Guaranteed Parties and Expected Guarantee Amounts (in ten thousand RMB)
| Guarantor | Guaranteed Party | Guarantor's Shareholding (%) | Guaranteed Party's Latest Debt-to-Asset Ratio (%) | Current Guarantee Balance | Current Guarantee Amount | New Guarantee Amount | Guarantee Amount as Percentage of Latest Net Assets (%) | Related Guarantee |
|---|---|---|---|---|---|---|---|---|
| Dongli Machinery | Shandong Anoda Auto Parts Manufacturing Co., Ltd. | 100 | 27.35 | 15,762 | 30,000 | -4,000 | 27.40 | No |
| Dongli Machinery | Dongli Deutschland GmbH | 100 | 87.21 | 0 | 8,000 | 2,000 | 10.54 | No |
| Dongli Machinery | Hebei Anoda Auto Shock Absorber Manufacturing Co., Ltd. | 100 | 41.18 | 500 | 8,000 | 2,000 | 10.54 | No |
| Total | - | - | - | 16,262 | 46,000 | 0 | 48.47 | - |