Zhejiang Zhongcheng: Provides a pledge guarantee of 58 million yuan to its holding subsidiary Zhongli Heceng

Zhejiang Zhongcheng announced that it has made new progress in providing guarantees for its holding subsidiary, Zhongli Composite Materials' financing. On July 21, 2025, the company signed a "Pledge Contract" with the Bank of China Zhejiang Demonstration Zone Branch, providing a pledge guarantee for Zhongli Composite Materials' "Working Capital Loan Contract" with a large time deposit of 58 million yuan, within the approved quota of 1.25 billion yuan. As of the disclosure date, the actual guarantee balance for Zhongli Composite Materials is 1.0029 billion yuan, accounting for 43.91% of the net assets at the end of 2024. It is particularly noted that Zhongli Composite Materials' latest asset-liability ratio exceeds 70%, and the company's guarantee amount exceeds 50% of its net assets, posing guarantee risks. The company and its subsidiaries have no overdue or litigation-related guarantee situations