Overview of Guarantee Situation - The company, Shanghai New Power Automotive Technology Co., Ltd., has provided guarantees for reputable dealers and end customers through its wholly-owned subsidiary, SAIC Hongyan Automobile Co., Ltd., to facilitate sales in the heavy truck business [2][3] - As of July 31, 2025, the outstanding guarantee balance for the repurchase guarantee business was RMB 4.78 million, which is only 0.001% of the company's audited net assets as of December 31, 2024 [3][5] Progress of SAIC Hongyan's Guarantee Business - In response to some dealers and end customers failing to repay loans on time, SAIC Hongyan ceased new guarantees for financing in October 2022 [3] - The outstanding guarantee balances for the years 2022, 2023, and 2024 were RMB 819.18 million, RMB 134.15 million, and RMB 6.38 million, respectively, indicating a significant reduction over time [3][4] - The company has been actively pursuing collections from dealers and end customers through various means, including legal action [4] Financial Details - As of July 31, 2025, the total financing advances made by SAIC Hongyan amounted to RMB 25.85 million, with specific amounts for dealer financing advances at RMB 10.66 million and end customer financing advances at RMB 15.19 million [4] - The company has recorded a total of RMB 3.1 million in deductions from its business guarantee account due to the failure of some dealers and end customers to repay their loans [4]