Huayou Cobalt updates on guarantees and share pledges

Zhejiang Huayou Cobalt has issued an update on its external guarantees, totaling RMB 245,000,000 for October 2025, primarily for its subsidiaries' financing needs. This brings the cumulative external guarantee balance to RMB 8,882,596.22, exceeding 100% of the company's latest audited net assets. Guarantees for subsidiaries with a debt-to-asset ratio over 70% amount to RMB 195,000,000, posing a risk noted by the company. All guarantees are in a joint and several liability format, with terms ranging from 11 months to 4 years.

Separately, the company's controlling shareholder, Huayou Holding Group, and its concerted party, Mr. Xuehua Chen, have adjusted their share pledges. Huayou Holding Group released RMB 70,692,000 of pledged shares, while Mr. Xuehua Chen released RMB 18,270,000. Concurrently, Mr. Xuehua Chen pledged an additional RMB 22,520,000 shares for financing purposes, expiring in 2028.

As of the latest report, Huayou Holding Group and Mr. Xuehua Chen jointly hold 20.63% of the company's total share capital, with 35.27% of their combined holdings currently pledged. The company confirms these pledges are manageable and do not impact operations or control.