Fenglin Group provides further guarantees to wholly-owned subsidiaries

Guangxi Fenglin Wood Industry Group Co. (Fenglin Group) has entered into guarantee agreements with Shanghai Pudong Development Bank Nanning Branch, providing guarantees totaling 40 million yuan for three wholly-owned subsidiaries. These are Guangxi Baise Fenglin Man-made Board Co., Guangxi Fenglin Man-made Board Co., and Guangxi Qinzhou Fenglin Wood Industry Co. The guarantees, in the form of joint liability, will cover financing for daily operations. Maximum limits are 20 million yuan for Baise Fenglin, and 10 million yuan each for Fenglin Man-made Board and Qinzhou Fenglin.

As of the announcement date, Fenglin Group has already provided actual guarantees of 151.9 million yuan for Baise Fenglin, 134.9 million yuan for Fenglin Man-made Board, and 10 million yuan for Qinzhou Fenglin. These guarantees fall within the 600 million yuan total guarantee limit approved by shareholders for 2025. Of this, 100 million yuan is allocated for subsidiaries with asset-liability ratios exceeding 70% and 500 million yuan for those below 70%. Qinzhou Fenglin's asset-liability ratio stood at 75.24% as of September 30, 2025, exceeding the 70% threshold.

The company emphasizes that the guarantees are for its wholly-owned subsidiaries, allowing direct control over their operations and management. Fenglin Group confirmed that there are no outstanding overdue external guarantees.