Skshu Paint guarantees subsidiaries, exceeding net assets by over 300%

Skshu Paint Co., Ltd. (the Company) has provided a RMB30,000,000 guarantee for Anhui Skshu Paint Co., Ltd. and a RMB150,000,000 guarantee for Sichuan Skshu Paint Co., Ltd. These guarantees, specifically for credit facilities with Ping An Bank and Chengdu Bank, are designed to support the subsidiaries' operational funding requirements. The total outstanding guarantee for Anhui Skshu Paint is RMB371,286,000, and for Sichuan Skshu Paint is RMB292,948,300.

The Company's total external guarantees, including these new provisions, amount to RMB9,850,000,000. This figure represents 366.72% of Skshu Paint's most recently audited net assets, significantly exceeding 100%. As of December 3, 2025, the total outstanding external guarantee balance for the Company and its subsidiaries is RMB3,278,207,500, which is 122.05% of the Company's latest audited net assets. Guarantees for subsidiaries alone total RMB3,236,767,000, or 120.51% of net assets.

The board of directors approved these guarantees within previously authorized limits, therefore no separate shareholder approval is required. The Company has no overdue guarantees.