Industrial Securities guarantees subsidiary's financial obligations

Industrial Securities Co., Ltd. has provided guarantees totaling $250 million for its wholly-owned offshore subsidiary, CISI Investment Limited (CISI). These guarantees are primarily for CISI's agreements with Industrial and Commercial Bank of China (Asia) Limited, Hang Seng Bank Limited, and Standard Chartered Bank (Hong Kong) Limited under the Global Master Repurchase Agreement (GMRA). The actual outstanding guarantee balance for CISI currently stands at $1.004 billion.

Additionally, Industrial Securities has increased the guarantee limit for CISI's transactions with Nomura International plc under the International Swaps and Derivatives Association (ISDA) agreement, raising it from $0.1 million to $0.5 million. These guarantees are open-ended with no counter-guarantee. CISI's asset-liability ratio exceeds 70%. This guarantee supports a subsidiary within the company's consolidated scope.

As of the announcement date, Industrial Securities and its controlling subsidiaries' total external guarantees amount to 23.283 billion yuan, representing 40.27% of the company’s most recent audited net assets. There are no overdue guarantee debts.