CFMOTO Power guarantees $7m rent for new Mexico subsidiary

Zhejiang CFMOTO Power Co., Ltd. (CFMOTO Power) announced a performance guarantee for the industrial plant rental of its new sub-subsidiary, CFMOTO Mexico Structural Technologies, S.A. DE C.V. (CFMS). The guarantee, approved by the board on September 9, 2025, covers CFMS's rental obligations under an agreement with WALTON 3 FIDEICOMISO INDUSTRIAL WV I CIB/3676, aiming to enhance overseas localization and production capacity.

The guarantee amount for CFMS will not exceed $7 million. As of the announcement date, no actual guarantee has been provided. CFMS, established on September 2, 2025, with a registered capital of MXN 50,505, is 99% owned by CFMOTO Power through its wholly-owned subsidiaries. The guarantee has no counter-guarantee from CFMS.

Following this guarantee, CFMOTO Power and its controlled subsidiaries' total external guarantee balance will not exceed $54 million. This represents 6.19% of the company's net assets from the latest audited period. The company clarified there are no overdue external guarantees.