Dunhuang Seed Group guarantees subsidiary's loan, advances 2025 plan

Gansu Dunhuang Seed Group Co., Ltd. announced further progress in its 2025 annual guarantee plan, providing a ¥9.8 million guarantee for a working capital loan to its controlling subsidiary, Guzhou Dunzhong Cotton Industry Co., Ltd. This guarantee contributes to the total cumulative guarantee balance of ¥49.8 million as of the announcement date. The 2025 guarantee plan, approved at the company's 2024 annual shareholders' meeting, allows for a total credit guarantee or counter-guarantee of up to ¥120 million for related wholly-owned and controlling subsidiaries.

Guzhou Dunzhong Cotton Industry Co., Ltd., located in Guazhou County, has a registered capital of ¥20 million. As of December 31, 2024, the subsidiary reported total assets of ¥47.4296 million, total liabilities of ¥38.4074 million, and net assets of ¥9.0222 million, with a debt-to-asset ratio of 80.98%. In 2024, it achieved a net profit of ¥8.745 million.

The guarantee is deemed necessary and reasonable, falling within the scope of the shareholders' meeting-authorized limit. The company currently has no counter-guarantees for this transaction and no overdue external guarantees. The total cumulative external guarantee amount of ¥49.8 million represents 7.64% of the company's net assets as of December 31, 2024.