Dahua Technology provides guarantees to subsidiaries

Zhejiang Dahua Technology has entered into a comprehensive credit line agreement with Ping An Bank Co., Ltd., Hangzhou Branch, to provide joint and several liability guarantees for several of its subsidiaries. This includes companies such as Zhejiang Dahua Technology Co. Ltd. (RMB 800m), and Zhejiang Dahua Zhilian Co. Ltd. (RMB 150m). These guarantees cover all principal, interest, and expenses arising from the credit lines and are valid for three years from the effective date of each specific business credit agreement.

These guarantee arrangements fall within the RMB 13.477bn aggregate guarantee limit previously approved by the company's board of directors and shareholders' meeting on March 28, 2025. This approval stipulated a maximum of RMB 1.099bn for subsidiaries with a debt-to-asset ratio below 70% and RMB 12.378bn for those above 70%, with flexibility for inter-subsidiary adjustments for those above the 70% threshold.

As of September 19, 2025, the company's total outstanding guarantees amount to RMB 8.968bn, representing 24.89% of its net assets as audited at the end of 2024. All current guarantees are for consolidated subsidiaries, with no overdue guarantees, litigation-related guarantees, or losses incurred from adverse judgments on guarantees.