Phichem material doubles guarantee for subsidiary's credit facility

Shanghai Phichem Material Technology Co., Ltd. (Phichem Material) announced an update on its guarantee provisions for Jiangsu Hecheng Display Technology Co., Ltd. (Hecheng Display). Phichem Material and Hecheng Display re-executed a "Maximum Amount Irrevocable Guarantee Letter" with China Merchants Bank Nanjing Branch. This updated guarantee provides a maximum amount joint and several liability guarantee of 200,000,000 yuan for Hecheng Display's credit facility, increasing from the previous 100,000,000 yuan.

This guarantee falls within the overall 3,500,000,000 yuan comprehensive credit line approved by Phichem Material's shareholders for 2025. Hecheng Display is a controlled subsidiary, with Phichem Material holding a 94.90% stake. The guarantee period extends from the effective date of the guarantee letter until three years after the maturity date of each debt.

As of August 31, 2025, Phichem Material's total actual guarantee balance for its subsidiaries reached 399,060,000 yuan, representing 9.92% of its latest audited net assets. The total actual guarantee balance provided by subsidiaries for Phichem Material was 714,880,000 yuan, accounting for 17.77% of its latest audited net assets. Hecheng Display reported a net profit of 129,891,500 yuan for the first half of 2025.