Summary of Key Points Core Viewpoint - The company, Tianchuang Fashion Co., Ltd., has provided a guarantee of RMB 37 million for its wholly-owned subsidiary, Guangzhou Tianchuang Intelligent Manufacturing Technology Co., Ltd., to support its commercial acceptance bill financing needs. This guarantee is not classified as an associated guarantee and is part of the company's ongoing support for its subsidiary's operations and financing requirements [1][6]. Group 1: Guarantee Overview - The guarantee amount provided by the company for Tianchuang Intelligent is RMB 37 million, with no counter-guarantee involved [1]. - As of the announcement date, the total guarantee balance provided by the company and its subsidiaries to the wholly-owned subsidiary is RMB 37 million [3][7]. - The company has no overdue external guarantee situations [1][7]. Group 2: Internal Decision-Making Process - The company held board meetings on July 10 and July 26, 2024, to approve the external guarantee limit for the year 2024, allowing a total guarantee amount of up to RMB 150 million, with RMB 40 million specifically for Tianchuang Intelligent [2]. - The company also held meetings on April 18 and May 23, 2025, to approve the external guarantee limit for 2025, allowing a total guarantee amount of up to RMB 140 million, with RMB 100 million specifically for Tianchuang Intelligent [3]. Group 3: Financial Condition of the Guaranteed Entity - Tianchuang Intelligent was established on December 14, 2020, with a registered capital of RMB 10 million and primarily engages in the sale of footwear and leather products [4][5]. - As of December 31, 2024, Tianchuang Intelligent reported total assets of RMB 19.51 million and total liabilities of RMB 40.74 million, resulting in a negative equity of RMB 21.23 million [5]. - The company reported a revenue of RMB 116.70 million and a net loss of RMB 7.39 million for the fiscal year 2024 [5]. Group 4: Guarantee Agreement Details - The company has entered into a guarantee agreement with Industrial Bank Co., Ltd. Guangzhou Branch, covering the principal, interest, penalties, and other costs related to the financing contract [6]. - The guarantee is part of a continuation of previous loan applications made by Tianchuang Fashion in July 2024 [6]. Group 5: Overall Guarantee Situation - The total guarantee amount of RMB 37 million represents 3.55% of the company's audited net assets for 2024, indicating that the guarantee risk is manageable and does not harm the interests of the company or its shareholders [7].