Xianhe guarantees subsidiary loan for new materials project

Xianhe Co. Ltd. is providing a guarantee of 183.3 million yuan for its wholly-owned subsidiary, Guangxi Xianhe New Materials Co. Ltd. The guarantee supports a syndicated loan facility from several major banks, including China Construction Bank, Export-Import Bank of China, Shanghai Pudong Development Bank, and Industrial and Commercial Bank of China.

This guarantee brings the total outstanding guarantee balance for the subsidiary to 634.3 million yuan, which falls within the previously approved annual guarantee limit of 370 million yuan for wholly-owned subsidiaries in 2025. The guarantee is a necessary and reasonable step, as Guangxi Xianhe New Materials is within Xianhe's consolidated reporting scope, ensuring comprehensive risk control.

The board of directors approved the 2025 annual external guarantee quota on January 23, 2025, and this specific guarantee was subsequently authorized. The company's total external guarantees, including the current one, amount to 1.12 billion yuan, representing 137.99% of its most recent audited net assets. The guarantee is a joint liability and has a duration of three years from the effective date of the main contract.