Zhuangyuan Pasture guarantees 20m yuan loan for subsidiary

Lanzhou Zhuangyuan Pasture Company Limited (Zhuangyuan Pasture) announced the progress of a guarantee matter, following a board resolution on June 20, 2025. The company has entered into a "Maximum Guarantee Contract" with the Bank of China Limited, Lanzhou Yellow River Central Branch, agreeing to provide a maximum principal guarantee of 20 million yuan for its wholly-owned subsidiary, Lanzhou Zhuangyuan Dairy Co., Ltd. (Zhuangyuan Dairy). This guarantee is for an amount not exceeding 65 million yuan previously approved by the board, and no further deliberation is required.

Zhuangyuan Dairy, established on July 18, 2024, has a registered capital of 10 million yuan. As of June 30, 2025, Zhuangyuan Dairy reported total assets of 588.5440 million yuan, total liabilities of 274.8899 million yuan, and net assets of 313.6541 million yuan. Its asset-liability ratio stood at 46.71%. For the first six months of 2025, the subsidiary generated operating revenue of 267.8835 million yuan and a net profit of 14.7887 million yuan.

The guarantee is a joint and several liability, with a guarantee period of three years from the expiration of each debt's performance period. As of the disclosure date, Zhuangyuan Pasture's external guarantees (excluding subsidiaries) remain at 0 yuan. Guarantees provided to subsidiaries, including this transaction, are expected to be less than 400 million yuan, well within 40% of the company's latest audited net assets. There are no overdue or illegal guarantees, nor any guarantees involving litigation or judgments.