Hainan Development: Compensated 3.2924 million yuan in interest for subsidiaries, with a total compensation of 122 million yuan.

The Hainan Development Announcement stated that the company provided financing guarantee for its holding subsidiary Haikong Sanxin. As of now, the amount of signed and still valid guarantee contracts is 242 million yuan, with the remaining principal of the guaranteed main debt at 185 million yuan. Due to Haikong Sanxin's inability to repay its maturing bank debt, the company recently provided actual compensation of 3.2924 million yuan to Zhejiang Commercial Bank Hefei Branch and Huishang Bank Bengbu Economic Development Zone Branch on its behalf, with a total accumulated compensation of 122 million yuan. Haikong Sanxin provided counter-guarantees using its own movable and immovable properties. Currently, the company's liquidity is good, and it will continue to pursue legal recovery; however, Haikong Sanxin faces the risk of bankruptcy.