Innuovo Technology guarantees significant loans for subsidiaries' growth

Innuovo Technology Co., Ltd. recently provided significant guarantees for its wholly-owned subsidiaries. On December 15, 2025, the company signed a "Maximum Guarantee Contract" with China Construction Bank for its subsidiary, Ganzhou Dongci Rare Earth Co., Ltd., and its sub-subsidiary, Zhejiang Dongyang Dongci Rare Earth Co., Ltd., securing a maximum debt of RMB 50,000,000 for their credit facilities. The following day, Innuovo Technology entered into another "Guarantee Contract" with Bank of China for Zhejiang Innuovo Magnetics Co., Ltd., guaranteeing electronic commercial drafts for RMB 23,791,489.32.

These guarantees fall within the RMB 150,000,000 total guarantee limit for subsidiaries approved by the company's 2024 Annual General Meeting, effective for twelve months from the approval date. As of the disclosure date, Innuovo Technology's total external guarantees amount to RMB 616,791,500, representing 22.95% of its most recent audited net assets. All guarantees are for subsidiaries and do not involve overdue or litigated cases, nor are there guarantees for shareholders or related parties.

The board of directors concluded that these guarantees are essential for the normal business operations of Zhejiang Dongyang Dongci Rare Earth Co., Ltd. and Zhejiang Innuovo Magnetics Co., Ltd., which both exhibit sound financial conditions. The board believes the related financial risks are manageable and that these guarantees do not harm the company or its shareholders.