Lao Feng Xiang guarantees US subsidiary's property lease

Lao Feng Xiang Co., Ltd. (Lao Feng Xiang) has provided a guarantee for its subsidiary, Lao Feng Xiang Jewelry USA LLC (Lao Feng Xiang USA), for a property lease agreement with Yue's Management Inc. for a New York, USA property. The guarantee, amounting to $430,000, was executed by Shanghai Lao Feng Xiang Co., Ltd., a controlled subsidiary, with Industrial And Commercial Bank of China LTD, Shanghai Xuhui Branch, and is valid until September 12, 2026. This action facilitates Lao Feng Xiang USA's business development.

As of September 25, 2025, Lao Feng Xiang's total outstanding guarantees and comfort letters amounted to RMB 62,109.62. This total represents 4.97% of the company's net assets as of December 31, 2024. All guarantees are within the scope of shareholder authorization and are for consolidated subsidiaries, with no overdue or litigious guarantees reported.

The decision was approved at the company's Eleventh Board of Directors' Fifteenth Meeting on April 28, 2025, and subsequently at the 2024 Annual General Meeting on June 26, 2025. Lao Feng Xiang USA is a third-tier subsidiary within the consolidated financial statements, and no counter-guarantee was obtained for this transaction. The company emphasizes its control over the subsidiary's operations and financial status, mitigating overall risk.