Tonghua Golden-Horse to guarantee subsidiary's RMB 157m loan

Tonghua Golden-Horse Pharmaceutical Industry Group Co., Ltd. announced its intention to provide a guarantee for its wholly-owned subsidiary, Harbin Santai Bio-Pharmaceutical Co., Ltd. (Santai Bio), to secure a loan from Yingkou Bank Co., Ltd. The guarantee will cover a principal amount not exceeding RMB 157,000,000.00, along with corresponding interest and fees, for a period of three years. This decision was approved by the company's board of directors with all nine directors voting in favor.

Santai Bio's asset-liability ratio exceeds 70%, and the guaranteed amount surpasses 50% of Tonghua Golden-Horse’s net assets as per 2024 audited figures. Following this guarantee, the company and its controlled subsidiaries' actual external guarantee balance will exceed 100% of the company's 2024 audited net assets. This entire amount represents guarantees for wholly-owned subsidiaries within the consolidated reporting scope.

The board views this guarantee as instrumental for Santai Bio's operational and developmental capital needs, acknowledging the subsidiary's stable financial performance and strong repayment capability. The company confirmed that there are no overdue guarantees, guarantees involved in litigation, or losses from adjudicated lawsuits due to guarantees.