Jiangxi Special Electric Motor guarantees $50m for new energy subsidiary

Jiangxi Special Electric Motor Co., Ltd. recently signed a pledge contract with a bank to provide a guarantee for its wholly-owned subsidiary, Yichun Yinli New Energy Co., Ltd. The guarantee secures a bank acceptance bill application for RMB 50,000,000, using time deposits as collateral. This action is within the RMB 2,800,000,000 guarantee limit approved by the company’s shareholders for daily operations of its subsidiaries, as outlined in their 2025 annual guarantee quota forecast.

The pledge guarantee covers the principal debt, interest, service fees, compound interest, penalties, liquidated damages, exchange rate losses, and other related expenses incurred from the lender's exercise of rights under the main contract. These expenses include costs for realizing the pledge rights, such as litigation and attorney fees. The guarantee aligns with resolutions passed at board and extraordinary shareholders' meetings in March and April 2025.

As of this announcement, the company's actual guarantee amount totals RMB 1,080,000,000, representing 30.81% of the net assets attributable to the parent company in its latest audited period. Guarantees provided to subsidiaries within the scope of consolidated statements amount to RMB 970,000,000, with an additional RMB 110,000,000 for controlling shareholders. The company confirms no overdue external guarantees, external guarantees involving litigation, or losses from judgment-defeated guarantees.