Leo Group chairman provides counter-guarantees for associated company debt

Leo Group (SZSE:002131) announced that its board of directors approved counter-guarantees from its controlling shareholder, Wang Xiangrong, for substantial financial commitments. These counter-guarantees address the company's prior decision to provide guarantees for its associated company, Wenling Lianyin Construction Engineering Co., a wholly-owned subsidiary of Shanghai Chuangxing Resources Development. The initial guarantees, totaling up to RMB300 million, involve Wenling Lianyin's loans from Industrial Bank Co., Taizhou Wenling Branch, and financing from Taizhou Jinrong Leasing Co. or its subsidiaries.

The counter-guarantee for Industrial Bank's obligation is capped at RMB100 million, while the counter-guarantee for Taizhou Jinrong Leasing's financing is set at RMB200 million, both for a period extending three years beyond the final settlement date. These measures aim to reduce Leo Group's guarantee risk and protect the interests of all shareholders, as confirmed by the company's independent directors.

These resolutions were finalized during the seventh board of directors' sixteenth meeting on September 22, 2025, following a special meeting of independent directors.