Huaming Power Equipment guarantees subsidiary's RMB 50m working capital loan

Huaming Power Equipment Co., Ltd. announced today that it signed a guarantee contract with Nanjing Bank Co., Ltd. Shanghai Branch on September 26, 2025. This agreement provides a joint and several liability guarantee for a principal amount of RMB 50 million, plus interest, penalties, and expenses. This arises from a working capital loan agreement between Shanghai Huaming Electric Power Equipment Manufacturing Co., Ltd. (Shanghai Huaming), a wholly-owned subsidiary, and Nanjing Bank. The guarantee period extends for three years from the maturity date of the principal contract's debt.

This guarantee falls within the previously approved total guarantee limit of RMB 1.3 billion for subsidiaries with a debt-to-asset ratio below 70%, as authorized by the 2024 annual general meeting. Following this transaction, Huaming Power Equipment's total outstanding guarantee for Shanghai Huaming stands at RMB 963 million, utilizing RMB 430 million of the 2025 allocated guarantee quota, with RMB 870 million remaining available for Shanghai Huaming in 2025.

As of the announcement date, the total guarantee amount provided by Huaming Power Equipment for its wholly-owned and controlling subsidiaries, including this transaction, reaches RMB 2,032.5 million. The actual guaranteed amount for wholly-owned and controlling subsidiaries is RMB 450.0281 million, representing 14.15% of the company’s net assets as per the 2024 audited figures. There are no overdue guarantees, litigation, or liabilities arising from adverse judgments.