Fenglin Group guarantees subsidiary’s yuan loan, boosting operational funding

Guangxi Fenglin Wood Industry Group Co. (Fenglin Group) has provided a 10 million yuan guarantee for its wholly-owned subsidiary, Guangxi Baise Fenglin Artificial Board Co. (Baise Fenglin). This guarantee, effective from September 30, 2025, to September 30, 2026, supports a principal debt of 10 million yuan with Huaxia Bank Nanning Jinhu Sub-branch. As of the announcement date, Fenglin Group's total outstanding guarantee for Baise Fenglin stands at 152 million yuan. The guarantee is a joint and several liability and does not involve any counter-guarantee.

This decision aligns with the company's 2025 annual external guarantee limit, approved at the Sixth Board of Directors' Twenty-First Meeting on April 10, 2025, and the 2024 Annual General Meeting on May 23, 2025. Baise Fenglin, established on April 8, 2003, with a registered capital of 270 million yuan, is 100% owned by Fenglin Group and operates in the manufacturing and sales of artificial boards and forest products. The guarantee aims to meet Baise Fenglin's operational funding needs, promoting its stable operations and long-term development.

As of the disclosure date, Fenglin Group and its subsidiaries' total external guarantee amount (including approved but unused limits and actual outstanding amounts) is 810 million yuan. This figure represents 30.99% of the company's net assets as audited for the year 2024. The guarantees provided to controlled subsidiaries also total 810 million yuan, accounting for 30.99% of the 2024 audited net assets. There are no overdue external guarantees.