Leo Group guarantees subsidiary's $420 million bank debt

Leo Group Co., Ltd. disclosed that it has provided a maximum guarantee of 420 million yuan for its wholly-owned subsidiary, Leo Group Zhejiang Pumps Industry Co., Ltd., to China Agricultural Bank Co., Ltd. Wenling Branch. This guarantee, effective from November 1, 2025, to October 31, 2026, covers various business transactions. The decision aligns with resolutions from the company's Seventh Board of Directors' Tenth Meeting and the 2024 Annual General Meeting, which approved guarantees up to 8.523 billion yuan for consolidated subsidiaries.

As of December 31, 2024, Leo Group Zhejiang Pumps Industry Co., Ltd. reported total assets of 1,290,958.51 million yuan and net assets of 834,362.74 million yuan. For 2024, the subsidiary generated operating revenue of 339,923.48 million yuan, with a net loss of 12,784.42 million yuan.

As of the announcement date, Leo Group's total outstanding guarantees for its wholly-owned and controlled subsidiaries amount to 302,564.53 million yuan, representing 23.48% of its most recent audited net assets from the 2024 consolidated financial statements. The board believes this guarantee supports the subsidiary's business development and is manageable, posing minimal risk to the company's overall interests.