Hangcha Group guarantees subsidiary's RMB100m loan

Hangcha Group Co., Ltd. has announced a guarantee for its controlled subsidiary, Zhejiang Hangcha Import and Export Co., Ltd. The guarantee, totaling RMB100 million, is for a financing facility with China Everbright Bank Hangzhou Branch, with the financing period extending from October 15, 2025, to September 29, 2026. This adds to existing guarantees already provided to Hangcha Import and Export.

Hangcha Import and Export, with a debt-to-asset ratio exceeding 70%, will utilize these funds to meet its operational capital needs. The board of directors deems the guarantee necessary for the subsidiary's stable operations and long-term development, noting Hangcha Group's control over its subsidiary's management, finances, and cash flow. As of the announcement date, the company's total external guarantees for subsidiaries amount to RMB520 million, representing 5.11% of its latest audited net assets.

Additionally, the company has extended guarantees for customer leaseback financing operations, totaling RMB146.0372 million, or 1.44% of its latest audited net assets. There are currently no overdue guarantees or guarantees involved in litigation.