Kinlong Hardware guarantees subsidiary's RMB 100m bank credit

Guangdong Kinlong Hardware Products Co., Ltd. announced that its wholly-owned subsidiary, Guangdong Kinlong Building Materials Sales Co., Ltd., has secured a comprehensive credit facility of up to RMB 100 million from the Dongguan Branch of Hua Xia Bank Co., Ltd. The company will provide a maximum guarantee for this credit facility. This action follows resolutions passed at company meetings earlier this year, which approved an estimated total guarantee limit for its subsidiaries.

The guarantee agreement outlines the scope of the guarantee to include the principal, interest, overdue interest, penalties, compound interest, liquidated damages, exchange losses, and other reasonable expenses incurred by Hua Xia Bank to realize its claims. The guarantee period is set for three years.

As of the announcement date, Kinlong Hardware's total approved guarantee limit amounts to RMB 400,000.00, representing 69.37% of its latest audited net assets attributable to the parent company. The actual outstanding external guarantee balance is RMB 311,700.72, which constitutes 54.06% of the parent company's net assets. All current guarantees are for the company's subsidiaries, and neither the company nor its subsidiaries have provided guarantees for external entities outside the consolidated financial statements, nor are there any overdue or litigation-related external guarantees.