Vats Liquor secures related-party guarantee, backs subsidiaries

Vats Liquor Chain Store Management Joint Stock Company (Vats Liquor) has made progress on guarantees, accepting a related-party guarantee and providing guarantees for its wholly-owned subsidiaries. Related party Huaze Group Co., Ltd. has provided a joint and several liability guarantee for Vats Liquor's comprehensive credit line of up to 250,000,000 yuan from China Everbright Bank Changsha Branch. This guarantee is provided without a fee or a requirement for counter-guarantee from Vats Liquor.

Additionally, Vats Liquor has signed a maximum amount guarantee contract with China Everbright Bank Changsha Branch to provide joint and several liability guarantees for its wholly-owned subsidiaries. These include Huazhi Premium Wines & Spirits Trading Co., Ltd. for up to 20,000,000 yuan and Hunan Jinzhi Wine Industry Co., Ltd. for up to 5,000,000 yuan. These guarantees fall within approved limits from the company's Fifth Board of Directors' Twenty-Fifth Meeting.

As of the announcement date, Vats Liquor's total outstanding guarantees for its subsidiaries amount to 232,123,300 yuan, representing 7.35% of its most recent audited net assets. There are no overdue guarantees, guarantees involving lawsuits, or guarantees for which Vats Liquor has been ordered to bear losses.