Zhefu Holding guarantees subsidiary loan, discloses shareholder share pledges

Zhefu Holding Group Co., Ltd. (Zhefu Holding) has issued a guarantee for its wholly-owned subsidiary, Zhejiang Fuchunjiang Hydropower Equipment Co., Ltd. (Zhefu Hydropower), covering a maximum loan of 300 million yuan from China Construction Bank, Tonglu Branch. This guarantee, effective for three years after the debt's maturity, raises Zhefu Holding's total guarantee balance for Zhefu Hydropower to 636.1263 million yuan, with an available guarantee quota of 863.8737 million yuan. This action aligns with resolutions passed at the 2024 Annual Shareholders' Meeting and the Sixth Board of Directors' Eighteenth Meeting.

Separately, Zhefu Holding also announced that its controlling shareholder, Mr. Sun Yi, processed pledge and release registrations for certain company shares. Mr. Sun Yi pledged 62.5 million shares, representing 1.20% of the company's total share capital, to Everbright Securities Asset Management Co., Ltd. for financing. Concurrently, 64 million shares previously pledged to Caitong Securities Co., Ltd. were released.

As of the disclosure date, the cumulative pledged shares by the controlling shareholder and his concerted parties total 873.473607 million shares, representing 49.73% of their holdings and 16.74% of the company's total share capital. Within the next six months, 653.173607 million pledged shares will mature, corresponding to a financing amount of 1.013 billion yuan.