Shenchi Electromechanical issues progress announcement on providing a guarantee of 200 million yuan to its wholly-owned subsidiary.

On July 23, Shench Electro-Mechanical announced that the company had signed a "Maximum Amount Guarantee Contract" with the Beibei Branch of Chongqing Rural Commercial Bank, providing a maximum joint and several liability guarantee of 200 million yuan for the debt of its wholly-owned subsidiary Chongqing Shench Import and Export Trading Co., Ltd. from July 22, 2025 to July 21, 2026, without any collateral. As of the announcement date, the actual guarantee balance of Shench Import and Export by the company is 281.6 million yuan. The company's total external guarantee amount is 1.43 billion yuan, accounting for 74.91% of the net assets audited in the latest period, with no overdue guarantees. This guarantee has been approved by the board of directors and the 2024 annual shareholders meeting, within the previously estimated guarantee amount of 731.6 million yuan. Shench Import and Export is a wholly-owned subsidiary of the company with a good operating condition, and the guarantee is necessary for its business development.