East Lake High-Tech Group guarantees subsidiary's RMB 100 million loan

Wuhan East Lake High-Tech Group has provided a guarantee for a RMB 100,000,000 credit line for its controlling subsidiary, Shanghai Taixin Environmental Engineering Co., Ltd., from Ping An Bank. The guarantee, approved by the board on April 25, 2025, and by shareholders on June 5, 2025, is part of the company's 2025 annual guarantee plan. As of the announcement date, the actual outstanding guarantee for Shanghai Taixin is RMB 96,756,800.

The total outstanding guarantee amount for Wuhan East Lake High-Tech and its subsidiaries, including this transaction, is RMB 1,355,377,700. This figure represents 15.30% of the company's net assets as of the last audited period. The overall approved guarantee limit, including unused portions, stands at RMB 6,680,377,700, or 75.40% of the net assets. The guarantee is a joint and several liability, with the guarantee period extending three years beyond the maturity of the underlying credit.

The company's board concluded that this guarantee, exceeding 50% of the company's latest audited net assets, is necessary and reasonable to support Shanghai Taixin's operational financing, enhance its ability to undertake projects, and provide contractual performance guarantees. Shanghai Taixin's current primary business development and cash flow are reported as good, with strong client and supplier relationships.