Rongfa Nuclear Power guarantees $200m for wholly-owned subsidiary's letter of guarantee business

Rongfa Nuclear Power Equipment Co. Ltd. ("Rongfa Nuclear Power") signed a counter-guarantee contract with Qingdao Financing Guarantee Group Co. Ltd. to provide a guarantee of up to 200 million yuan for its wholly-owned subsidiary, Yantai Taihai Manoir Nuclear Equipment Co. Ltd. ("Yantai Taihai Nuclear Power"), to apply for a separate letter of guarantee business from the financing guarantee group. This matter was approved by the company's 15th meeting of the sixth board of directors, the 10th meeting of the sixth supervisory board, and the 2024 annual general meeting of shareholders. The company expects the total guarantee amount provided for Yantai Taihai Nuclear Power for the full year not to exceed 1.5 billion yuan, and this guarantee is within that limit, so it does not require resubmission to the board of directors and general meeting of shareholders.

Following this guarantee, the total external guarantee amount of the company and its controlled subsidiaries reached 1.726 billion yuan, accounting for 37.23% of the company's audited net assets for 2024. Of this, the company provided guarantees of 675 million yuan for its subsidiaries, and counter-guarantees of 1.051 billion yuan for its controlling shareholder, Qingdao Military-Civilian Integration Development Group Co. Ltd., based on shareholding ratio. After this guarantee, the company and its controlled subsidiaries have no overdue guarantees and are not involved in litigation or unfavorable outcomes.

Yantai Taihai Nuclear Power has a registered capital of 661 million yuan. As of June 30, 2025, its total assets were 5.666 billion yuan, total liabilities were 3.372 billion yuan, and net assets were 2.293 billion yuan. In the first half of 2025, the company achieved operating revenue of 261.43 million yuan and a net loss of 33.55 million yuan.