Harbin High-Tech Group's shareholders pledge nearly all their shares; company guarantees subsidiary

Harbin High-Tech Group (Xiangcai Co.) announced that its controlling shareholder's concerted party, Quzhou Xinan Development Co., Ltd. (Quzhou Development), has pledged 14m shares, representing 3.01% of its holdings and 0.49% of the company's total share capital. Following this pledge, Quzhou Development's cumulative pledged shares amount to 443.4m shares, or 95.47% of its holdings and 15.51% of the company's total share capital. Cumulatively, the controlling shareholder and its concerted parties have pledged 1.13bn shares, representing 98.17% of their total holdings and 39.63% of the company's total share capital, primarily for daily operations.

Additionally, Xiangcai Co. provided a joint and several liability guarantee for its wholly-owned subsidiary, Zhejiang Xianglian Industrial Co., Ltd. (Xianglian Industry), with a maximum principal amount of 120m yuan. This guarantee is valid from September 24, 2025, to December 31, 2026. This new guarantee, combined with a previous maximum pledge contract, both secure the same loan for Xianglian Industry, which has a reported asset-liability ratio exceeding 70%.

As of the disclosure date, the total external guarantee amount provided by Xiangcai Co. and its subsidiaries is 98m yuan, all for controlled subsidiaries. The actual outstanding guarantee amount (excluding this transaction) is 23.146m yuan, representing 1.96% of the company's latest audited net assets attributable to shareholders.