Quzhou Xinan Development proposes to double financing guarantee limit

Quzhou Xinan Development Co., Ltd. is set to hold its fourth extraordinary general meeting of shareholders in 2025 on November 17, 2025, to discuss an adjustment to its related party guarantee arrangements. The company proposes to increase the total financing guarantee provided by Quzhou Industrial Holding Group Co., Ltd. and/or its subsidiaries from 1.5 bn yuan to 3 bn yuan. This expanded guarantee will support the company's financing activities with banks, financial institutions, and other partners, covering various forms of collateral, including guarantees, mortgages, and pledges.

In exchange for this increased guarantee, Quzhou Xinan Development will provide a counter-guarantee of an equivalent amount and pay an annual guarantee fee not exceeding 1% of the financing principal. The counter-guarantee will be determined through negotiations between the parties. This arrangement, valid for 12 months from the date of shareholder approval, is expected to enhance the company's financing efficiency, optimize its debt structure, and support its industrial transformation.

The company's board of directors approved the proposal with five votes in favor, zero against, and zero abstentions, with related party directors abstaining. Independent directors also reviewed the proposal, confirming that the related party transaction is fair and does not harm the interests of the company or its shareholders.