Elegant(SH:603221) Zhong Guo Zheng Quan Bao - Zhong Zheng Wang·2025-08-01 23:14Summary of Key Points Core Viewpoint - The company has announced a guarantee agreement with East West Bank to support its subsidiary's financing needs, increasing the total credit limit and adjusting the guarantee amount accordingly [1][3]. Group 1: Guarantee Overview - As of the announcement date, the total external guarantee amount provided by the company and its subsidiaries is $7,824,173.92, equivalent to approximately ¥56,243,300 [1][6]. - The guarantee amount represents 3.53% of the company's audited net assets as of December 31, 2024 [6]. Group 2: Guarantee Details - In October 2023, the company signed a commercial guarantee contract with East West Bank, initially providing a guarantee of $382.50 million for a joint venture, which was later increased to $484.50 million following a terms modification agreement [1][3]. - The guarantee is structured as a joint liability guarantee, effective upon receipt by the lender and remains valid until all obligations are fulfilled [3]. Group 3: Decision-Making Process - The company’s board approved the guarantee at the tenth meeting of the third board on April 28, 2025, and it was ratified at the annual shareholders' meeting on May 20, 2025 [2][5]. - The total guarantee amount for the U.S. joint venture for 2025 is capped at $550,000, which includes existing guarantees [2]. Group 4: Necessity and Reasonableness of Guarantee - The guarantee is deemed necessary and reasonable to support the subsidiary's daily business operations and overall business development [4]. - The company maintains oversight of the subsidiary's financial health, ensuring manageable risk levels [4].