China First Heavy Industries disclosed the progress of the guarantee expected matters by August 2025.

CITIC Heavy Industries' announcement shows that in August 2025, it accepted the commission of its wholly-owned subsidiaries, Engineering Company and Construction Company, to apply to banks for the issuance of guarantees in the amounts of 2 million yuan and 65,700 yuan respectively. As of August 31, the actual guarantee balance for Engineering Company and Construction Company was 255.42 million yuan and 46.01 million yuan respectively. The company sets the guarantee limit for wholly-owned subsidiaries with asset-liability ratios above and below 70% at no more than 800 million yuan and 1.51 billion yuan respectively, totaling no more than 2.31 billion yuan. Currently, some previous guarantees have expired, and the company's guarantee obligations have been lifted. In addition, the company is involved in litigation related to overdue guarantees, with the case in the second instance. The Board of Directors believes that the guarantee risk is controllable but advises investors to note that as of the end of June, the asset-liability ratio of the guarantor exceeded 70%.