Fenglin Wood Industry guarantees subsidiaries' loans for operational needs

Guangxi Fenglin Wood Industry Group Co., Ltd. (Fenglin Group) has entered into guarantee agreements with Industrial Bank Co., Ltd. Nanning Branch, providing a total of RMB 1.98 bn in guarantees for its wholly-owned subsidiaries, Guangxi Baise Fenglin Man-made Board Co., Ltd. and Guangxi Fenglin Man-made Board Co., Ltd. Each subsidiary received a guarantee amount not exceeding RMB 990m, with the guarantee period spanning three years from the maturity date of the main debt contract. These guarantees are aimed at meeting the subsidiaries' daily operational funding requirements.

As of the announcement date, Fenglin Group had already provided RMB 13.19 bn in guarantees to Baise Fenglin and RMB 12.49 bn to Fenglin Man-made Board. The total external guarantee amount, including approved and unused credit lines and actual outstanding balances, is RMB 7.20 bn, representing 27.55% of the company's net assets as per 2024 audited figures. The guarantees are non-recourse and involve no related-party transactions, aligning with the company's overall interests by supporting its subsidiaries' stable operations and development.