Xiangcai Securities Co., Ltd.
Review Opinion on Guangdong Feinan Resource Utilization Co., Ltd.'s Controlling Shareholder and Actual Controller Applying for Credit Guarantee for Related Party Transactions
Xiangcai Securities Co., Ltd. (hereinafter referred to as "Xiangcai Securities" or "Sponsor") is the sponsor responsible for the continuous supervision of Guangdong Feinan Resource Utilization Co., Ltd. (hereinafter referred to as "Feinan Resource", "the Company", or "the Issuer") for its initial public offering of shares and listing on the ChiNext market. In accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship Business," the "ChiNext Market Stock Listing Rules of the Shenzhen Stock Exchange," the "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidelines No. 2 - Norms for the Operation of ChiNext Companies," and the "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidelines No. 13 - Sponsorship Business," among other relevant regulations, we have reviewed the matter of Feinan Resource's controlling shareholder and actual controller applying for credit guarantee for the Company's credit application, which constitutes a related party transaction. The details of the review are as follows:
I. Overview of Related Party Transactions
To meet the Company's and its consolidated subsidiaries' production and operation capital needs and ensure stable operations, the Company and its subsidiaries plan to apply for a comprehensive credit line of no more than RMB 12 billion from banks and other institutions in 2026. The credit products and purposes include, but are not limited to, working capital loans, fixed asset loans, project loans, acceptance drafts, guarantees, letters of credit, bill discounts, and other comprehensive services. The aforementioned credit line does not represent the Company's actual financing amount. The specific partner institutions and the final financing amount and methods will be further negotiated with relevant institutions and will be subject to officially signed agreements.
Mr. Sun Yanjun, one of the controlling shareholders and actual controllers of the Company, will provide joint liability guarantee for the Company and its subsidiaries within the scope of the aforementioned credit line. The related party will not charge any guarantee fees during the guarantee period and will not require any counter-guarantee from the Company and its subsidiaries. The specific form, amount, and duration of the guarantee will be subject to the officially signed guarantee agreement.