Chongqing International Composite Materials Co., Ltd. (hereinafter referred to as "the Company") held the 15th meeting of the 3rd Board of Directors on April 22, 2026, where the proposal on providing external guarantee quotas for wholly-owned and controlling subsidiaries for 2026 was unanimously approved. This proposal is subject to shareholder meeting approval, with the following details:
1. Overview of the Guarantee Situation
(1) Overview of the Guarantee Situation
To meet the business development and operational needs of its subsidiaries and to improve their loan and financing efficiency, the Company intends to apply for comprehensive credit for the following wholly-owned subsidiaries within the consolidated financial statements for the year 2026: CPIC Brasil Fibras de Vidro Ltda. (hereinafter referred to as "Brazil Company"), Chongqing Tianze New Materials Co., Ltd. (hereinafter referred to as "Chongqing Tianze"), Zhuhai Zhuglass Electronic Materials Co., Ltd. (hereinafter referred to as "Zhuhai Zhuglass"), Changzhou Hongfa Zongheng New Materials Technology Co., Ltd. (hereinafter referred to as "Hongfa New Materials"), and the controlling subsidiary CPIC Abahsain Fiberglass W.L.L. (hereinafter referred to as "Bahrain Company"). The guarantees will cover various financing needs (including but not limited to RMB or foreign currency working capital loans, project loans, trade financing, bank acceptance bills, letters of credit, guarantees, bill discounting, factoring, financing leasing, export financing, foreign exchange forward transactions, and derivative products) and other daily operational needs (including but not limited to performance guarantees and product quality guarantees). The forms of guarantees may include but are not limited to credit guarantees (including general guarantees, joint liability guarantees, etc.), mortgage guarantees, pledge guarantees, or a combination of multiple guarantee methods. The estimated guarantee amount will not exceed RMB 342 million or its equivalent in foreign currency, with a guarantee amount of RMB 262 million for subsidiaries with a debt-to-asset ratio not exceeding 70%, and RMB 80 million for subsidiaries with a debt-to-asset ratio exceeding 70%. The guarantee period will be from the date of approval by the 2025 annual general meeting of shareholders until the date of approval of a similar proposal by the 2026 annual general meeting of shareholders. The Board of Directors requests that the shareholders authorize the management team to review and sign relevant contracts and legal documents within the approved guarantee quota.
(2) Review Procedures
The Company held the 15th meeting of the 3rd Board of Directors on April 22, 2026, where the proposal on providing external guarantee quotas for wholly-owned and controlling subsidiaries for 2026 was approved. This proposal is subject to shareholder meeting approval.