Fangda Special Steel adjusts guarantees, approves subsidiary support

Fangda Special Steel Technology Co., Ltd. has announced an adjustment to its related party guarantee limit with Fangda Carbon New Material Technology Co., Ltd., reducing the mutual guarantee amount from up to RMB 1 billion to up to RMB 500 million. This decision, approved at a board meeting, is pending shareholder approval. The original mutual guarantee agreement, established in January 2023 for ten years, was for comprehensive credit lines and company bonds.

Additionally, the board approved a new guarantee for its wholly-owned subsidiary, Ningbo Fangda Seagull Trading Co., Ltd., for a comprehensive credit line of RMB 50 million with Huishang Bank. Ningbo Fangda Seagull’s asset-liability ratio stood at 91.47% as of September 30, 2025. This guarantee is also subject to shareholder approval.

A fourth extraordinary general meeting for 2025 has been scheduled for December 15, 2025, to seek shareholder approval for both the adjusted related party guarantee with Fangda Carbon and the new guarantee for Ningbo Fangda Seagull. As of November 29, 2025, Fangda Special Steel's total external guarantees (including subsidiaries) amount to RMB 425,800,000, representing 45.80% of its latest audited net assets, with no overdue guarantees.