Jifeng Auto Parts guarantees significant bank financing for subsidiaries

Ningbo Jifeng Auto Parts Co., Ltd. (the "company") is providing significant bank financing guarantees for its wholly-owned subsidiaries: Jifeng Seating (Changzhou) Co., Ltd., Shanghai Jifeng Seating Co., Ltd., Jifeng Seating (Hefei) Co., Ltd., and Jifeng Seating (Yiwu) Co., Ltd. The total guarantees amount to 46,000 million yuan for Jifeng Seating (Changzhou), 10,000 million yuan for Shanghai Seating, 35,000 million yuan for Jifeng Seating (Hefei), and 1,000 million yuan for Jifeng Seating (Yiwu). These guarantees, approved at the 2024 annual shareholders' meeting, aim to meet the subsidiaries' daily operational capital needs and support the company's business development.

As of the disclosure date, the company's actual guarantee balances are 148,000 million yuan for Jifeng Seating (Changzhou), 10,000 million yuan for Shanghai Seating, 120,000 million yuan for Jifeng Seating (Hefei), and 1,000 million yuan for Jifeng Seating (Yiwu). The guarantees are provided as joint and several liability, with no counter-guarantees from the subsidiaries.

The total external guarantees by the company and its wholly-owned and controlled subsidiaries amount to 136.51 billion yuan, representing 293.70% of the company's audited net assets for 2024. The company emphasizes that all guarantees are for wholly-owned and controlled subsidiaries, and there are no overdue or related-party guarantees. This level of guarantee exceeding 100% of net assets highlights a notable investment risk for investors.