Longping High-Tech subsidiary guarantees loan for Hong Kong unit

Yuan Longping High-Tech Agriculture Co., Ltd. announced that its subsidiary, Longping Agricultural Development Co., Ltd., has provided a joint and several liability guarantee for a RMB 50 million loan from CITIC Bank Corporation Limited Changsha Branch. This loan is for the company's indirect wholly-owned subsidiary, Amazon Agri Biotech HK Limited, to meet its funding requirements. The guarantee is also supported by Longping High-Tech Biotecnologia Ltda., the actual operating entity for Longping Development, and falls within the scope of guarantee limits approved at the company's 2024 annual general meeting.

This guarantee arrangement involves an internal adjustment of approved guarantee quotas. Longping Hong Kong's guarantee quota has increased from RMB 500 million to RMB 670 million (or equivalent foreign currency), while Longping Brazil's quota decreased from RMB 180 million to RMB 10 million (or equivalent foreign currency). The total guarantee quota for the company remains unchanged at RMB 680 million (or equivalent foreign currency). Both Longping Hong Kong and Longping Brazil had recent asset-liability ratios below 70%.

As of the disclosure date, the company and its subsidiaries have signed guarantee agreements totaling RMB 612.8976 million, representing 128.48% of the company's latest audited net assets. All these guarantees are inter-subsidiary arrangements within the consolidated financial statements, with no external or overdue guarantees, nor any guarantees involved in litigation.