Red Star Macalline guarantees subsidiary loan, director released

Red Star Macalline Group Corp. will provide a full, joint and several liability guarantee for a RMB 450,000,000 loan from Industrial and Commercial Bank of China to its wholly-owned subsidiary, Nanjing Red Star International Furniture Decoration City Co., Ltd. The guarantee includes an equity pledge, a real estate mortgage, and an accounts receivable pledge. The company's total external guarantees, including this transaction, amount to RMB 1,592,464.

Separately, Red Star Macalline announced the lifting of restrictive measures against its director and general manager, Che Jianxing, who had been under investigation since May 14, 2025. The company received notification on September 22, 2025, that Mr. Che Jianxing has been released from detention.

These actions were approved by the board of directors and do not require shareholder approval. The guarantee is deemed necessary for the subsidiary's operational needs and long-term development, with manageable risk.