Summary of Key Points Core Viewpoint - The company, Hu Shi Electronics Co., Ltd., has announced that it will provide guarantees for its wholly-owned subsidiary, Hu Shi International Co., Ltd., which has an asset-liability ratio exceeding 70%. The total guarantee amount will not exceed RMB 5 billion, with specific allocations for subsidiaries based on their asset-liability ratios [1][2]. Group 1: Guarantee Overview - The company approved a total guarantee amount of up to RMB 5 billion for its subsidiaries, with RMB 2 billion allocated for subsidiaries with an asset-liability ratio of 70% or higher, and RMB 3 billion for those below 70% [1][2]. - The guarantees will include various forms such as credit guarantees, mortgage guarantees, and pledge guarantees, aimed at supporting the subsidiaries in obtaining credit from financial institutions [1][2]. Group 2: Subsidiary Financials - Hu Shi International, established in 2006, has total assets of RMB 402,145.28 million and total liabilities of RMB 371,118.17 million as of July 31, 2025. The company reported a net profit of RMB 1,768.53 million for the first seven months of 2025 [2]. - The subsidiary's financial risk is considered manageable, and it is not classified as a dishonest executor [2][5]. Group 3: Contractual Details - A maximum principal guarantee contract has been signed with CITIC Bank for Hu Shi International, which will facilitate the subsidiary's credit application [3][4]. - The company has also provided guarantees for other subsidiaries, including Hu Shi Thailand and Shengwei Ce Electronics, with specific amounts detailed for each [7][8]. Group 4: Board Opinion - The board believes that providing guarantees will help Hu Shi International secure funding and support its business operations, with the associated financial risks being within controllable limits [5][6]. Group 5: Current Guarantee Status - As of the announcement date, the company has no overdue guarantees or guarantees involved in litigation, indicating a stable guarantee situation [6][7].