Zhaowei Machinery & Electronic guarantees subsidiary's bank loans

Shenzhen Zhaowei Machinery & Electronic Co., Ltd. (Zhaowei) announced on October 28, 2025, that it has entered into maximum guarantee contracts with China CITIC Bank Shenzhen Branch and Industrial and Commercial Bank of China Dongguan Wangniudun Branch. These guarantees are for its wholly-owned subsidiary, Dongguan Zhaowei Machinery & Electronic Co., Ltd. (Dongguan Zhaowei), to support its bank credit applications and daily operations.

The latest guarantee involves a sum of yuan 10,000,000 for Dongguan Zhaowei, bringing the subsidiary's total outstanding guaranteed balance to yuan 10,000,000. This action falls within the yuan 150,000,000 maximum guarantee limit approved by Zhaowei's Third Extraordinary General Meeting in 2024 for the 2025 fiscal year. After this latest guarantee, Dongguan Zhaowei still has yuan 50,000,000 of its approved guarantee limit available.

Dongguan Zhaowei, established on October 31, 2018, with a registered capital of yuan 230,000,000, reported total assets of yuan 93,092.17 in the first half of 2025, with a net profit of yuan 4,711.34. The guarantees are structured as joint and several liability. The board believes these guarantees are crucial for the subsidiary's operational needs and sustainable development.