Group 1 - The company, Zhongkuang Resources Group Co., Ltd., is engaging in a sale-leaseback financing lease with Far East Horizon (Tianjin) Financing Leasing Co., Ltd., with a financing amount not exceeding RMB 220 million [2][3] - The company provides an irrevocable joint liability guarantee for its wholly-owned subsidiary, Zhongkuang Resources (Jiangxi) Lithium Industry Co., Ltd., for the financing lease [2][5] - The total guarantee amount for Zhongkuang Resources (Jiangxi) Lithium Industry after this financing lease will be RMB 220 million, which is within the approved guarantee limit by the company's shareholders' meeting [3][11] Group 2 - The company has approved a maximum guarantee amount of RMB 850 million for the fiscal year 2025, which includes guarantees provided between the company and its subsidiaries [2][11] - As of the announcement date, the total amount of guarantees provided by the company and its subsidiaries is RMB 412 million, accounting for 33.82% of the audited net assets attributable to shareholders as of December 31, 2024 [11] - There are no overdue guarantees or guarantees involved in litigation that could result in losses for the company [11]

Core Points - The company held its fifth temporary board meeting of 2025 on September 5, 2025, where all nine directors were present and approved several resolutions [1][2][3]. Group 1: Financing Guarantees - The board approved the cancellation of the guarantee for Shandong Huasu's financing application to Qishang Bank, which was previously set at a limit of 10 million RMB for a one-year term [2][3]. - The board also approved the cancellation of the guarantee for Shandong Huasu's financing application to Hengfeng Bank, with the same limit of 10 million RMB for a one-year term [2][3]. Group 2: Financing Lease Business - Shandong Huasu plans to engage in a sale-leaseback financing lease with Guoyao Ronghui, with a financing limit of up to 30 million RMB and a term not exceeding two years, aimed at supplementing working capital [4][5]. - The company, along with its subsidiaries, will provide joint liability guarantees for this financing lease [4][5].

Core Viewpoint - The company plans to engage in financing leasing and factoring business through its wholly-owned subsidiary to support the upgrade of the Manjing Phase IV project, aiming to reduce financing costs and optimize capital allocation [1][2]. Summary by Sections Transaction Overview - The subsidiary, Zhangbei Operation Company, intends to conduct a total financing of RMB 90 million, comprising RMB 68 million for financing leasing and RMB 22 million for factoring [1][2]. - The financing leasing will have a term of 5 years, while the factoring will last for 2 years [1][3]. Board Approval - The transaction has been approved by the company's board of directors, with no need for shareholder meeting approval due to the transaction amount [2][4]. Related Party Information - The leasing and factoring companies are wholly-owned subsidiaries of the company's controlling shareholder, and thus constitute related party transactions [4][6]. - The leasing company has total assets of approximately RMB 129.53 million and a net profit of RMB 657.52 million as of June 30, 2025 [4][6]. Transaction Details - The leasing involves the use of wind turbines and related equipment from the Manjing Phase III project as the leased asset, with a net asset value of RMB 73.96 million [7]. - The factoring involves the transfer of receivable subsidy electricity fees, which are free from any encumbrances or disputes [7]. Pricing Policy - The interest rates and fees provided by the related parties will not exceed those offered by other financial institutions for similar services, ensuring fair pricing [7][9]. Impact on the Company - The transaction is expected to facilitate the upgrade of the Manjing Phase IV project, optimize the company's capital structure, and enhance capital efficiency, aligning with the company's operational needs [7][9].