CHIC disclosed the progress of the guaranteed expected matters in August 2025

CHIC announced that in August 2025, it accepted the entrustment of its wholly-owned subsidiaries, the Engineering Company and the Construction and Installation Company, to apply to the bank for the issuance of guarantee letters amounting to 2 million yuan and 65,700 yuan, respectively. As of August 31, the actual guarantee balances for the Engineering Company and the Construction and Installation Company were 255.4242 million yuan and 46.0114 million yuan, respectively. The company's guarantee limits for wholly-owned subsidiaries with asset-liability ratios above and below 70% are not to exceed 800 million yuan and 1.51 billion yuan, respectively, totaling no more than 2.31 billion yuan. Currently, some of the previous guarantee letters have expired, and the company's guarantee responsibilities have been released. In addition, the company is involved in litigation regarding overdue external guarantees, and the case is in the second instance. The board of directors believes that the guarantee risk is controllable but reminds investors to pay attention that as of the end of June, the asset-liability ratio of the guaranteed party exceeded 70%