Summary of Key Points Core Viewpoint - The company has approved a guarantee limit of up to 4 billion RMB for its subsidiaries' debt financing in 2025, with specific allocations based on their asset-liability ratios [2]. Group 1: Guarantee Overview and Approval - The company held board meetings on April 8 and May 13, 2025, to approve the guarantee for subsidiaries, with a total limit of 4 billion RMB for 2025 [2]. - The guarantee allocation includes up to 3.08 billion RMB for subsidiaries with an asset-liability ratio below 70% and up to 920 million RMB for those above 70% [2]. - Specific guarantees include 70 million RMB for Kunming Kunbai Property Management Co., Ltd., 10 million RMB for Kunming Baijia Commercial Co., Ltd., and 230 million RMB for Kunming Baijia Commercial Ltd. [2]. Group 2: Guarantee Adjustment Between Subsidiaries - The company plans to transfer 15 million RMB of unused guarantee from Kunming Baijia Commercial to Kunming Baijia Trade, increasing the latter's guarantee from 10 million RMB to 25 million RMB [2]. - This adjustment represents 0.16% of the company's latest audited net assets [2]. Group 3: Guarantee Progress - Kunming Kunbai Property and Kunming Baijia Trade intend to apply for a credit limit of 75 million RMB from Yuntou Commercial Factoring (Shenzhen) Co., Ltd., with a two-year validity [3]. - The company will provide joint liability guarantees and mortgage guarantees for the credit agreement [3]. Group 4: Basic Information of Guaranteed Parties - Kunming Baijia Commercial has total assets of 771.39 million RMB and net assets of 430.87 million RMB as of December 31, 2024, with a net profit of 4.14 million RMB for the year [5]. - Kunming Kunbai Property has total assets of 65.14 million RMB and net assets of 7.37 million RMB as of December 31, 2024, with a net loss of 2.49 million RMB for the year [8]. - Kunming Baijia Trade has total assets of 9.42 million RMB and net assets of 3.99 million RMB as of December 31, 2024, with a net profit of 0.13 million RMB for the year [9]. Group 5: Main Content of Guarantee Contracts - The guarantee contract includes a principal debt amount of 75 million RMB, covering various financial obligations [10]. - The guarantee period lasts for three years from the maturity of the main debt [11]. Group 6: Board Opinions - The board believes that providing guarantees supports the sustainable development of its subsidiaries and that the associated risks are manageable [16]. - The guarantees have been approved by the shareholders' meeting and comply with relevant laws and regulations [16]. Group 7: Total External Guarantees - The total balance of external guarantees after this transaction is 2.26 billion RMB, representing 24.03% of the company's latest audited net assets [18]. - The company has no overdue debts or guarantees related to litigation [17].