East Lake High-Tech guarantees subsidiary's RMB 100 million loan

Wuhan East Lake High-Tech Group (East Lake High-Tech) announced a RMB 100,000,000 guarantee for its controlling subsidiary, Shanghai Taixin Environmental Engineering Co., Ltd. (Taixin Environmental), with Nanjing Bank Co., Ltd., Shanghai Branch. This brings Taixin Environmental's total outstanding guarantees from East Lake High-Tech to RMB 140,539,400.

The guarantee is part of a larger plan approved by the board and shareholders for 2025, which projects total guarantees for wholly-owned and controlling subsidiaries not exceeding RMB 6,125,000,000. East Lake High-Tech's total external guarantees, including the current one and approved unused limits, amount to RMB 6,258,888,800, representing 70.65% of its most recent audited net assets.

Taixin Environmental's financials show total assets of RMB 1,347,110,800 and net assets of RMB 644,148,400 as of December 31, 2024. The company reported a net profit of RMB 79,952,500 for January-December 2024. For January-September 2025, it reported a net loss of RMB 34,468,700, attributed to revenue recognition primarily in the fourth quarter.