Shenergy environmental guarantees Lanxi Zili's RMB250m bank loan

Hangzhou Fuyang Shenergy Solid Waste Environmental Protection and Regeneration Co., Ltd. (Shenergy Environmental), a wholly-owned subsidiary of Zhefu Holding Group Co., Ltd., has provided a joint and several liability guarantee for Lanxi Zili Environmental Technology Co., Ltd. (Lanxi Zili). The guarantee covers a maximum principal amount of RMB250,000,000 for a loan from the Hangzhou Branch of Shanghai Pudong Development Bank Co., Ltd. The guarantee period extends for three years after the expiration of the debt performance period.

Lanxi Zili is a wholly-owned subsidiary of Zhefu Holding Group and, as of the latest period, has a liability-to-asset ratio exceeding 70%. The decision to provide this guarantee was approved by Shenergy Environmental's shareholders and subsequently by Zhefu Holding Group's sixth board of directors at its eighteenth meeting and the 2024 annual shareholders' meeting.

As of the disclosure date, Zhefu Holding Group's total approved guarantee amount for consolidated subsidiaries is RMB550,000,000, with outstanding guarantees totaling RMB127,022,600, representing 11.26% of the company's latest audited net assets. The cumulative guarantee balance for consolidated subsidiaries is RMB637,550,880. The company confirmed no guarantees are provided to external parties outside the consolidated scope, nor are there any overdue or disputed guarantees.