Elegant(SH:603221) Zheng Quan Zhi Xing·2025-08-01 16:10Summary of Key Points Core Viewpoint - The company has announced a guarantee of $4.845 million for its subsidiary, American Flooring LLC, to enhance its financing capabilities and support business development [1][2][6]. Group 1: Guarantee Details - The guarantee amount provided by the company is $4.845 million, which is part of a total credit line of $9.5 million for the joint venture [2][4]. - The company holds a 51% stake in American Flooring LLC, which is a joint venture with HMTX Industries, LLC owning the remaining 49% [4][6]. - The guarantee is structured as a joint liability guarantee, effective upon receipt by the lender, East West Bank, and remains valid until all obligations are fulfilled [4][6]. Group 2: Financial Overview of the Subsidiary - As of the first quarter of 2025, American Flooring LLC reported total assets of approximately $48.648 million and total liabilities of about $25.501 million [4]. - The subsidiary's net profit for the first quarter of 2025 was a loss of approximately $1.121 million, compared to a loss of about $1.951 million for the entire year of 2024 [4]. Group 3: Internal Decision-Making Process - The guarantee was approved during the company's board meeting on April 28, 2025, and subsequently ratified at the annual shareholders' meeting on May 20, 2025 [2][6]. - The total amount of guarantees provided by the company as of the announcement date is approximately $7.824 million, which represents about 3.53% of the company's audited net assets as of December 31, 2024 [6].