GSMG plans to provide a maximum guarantee of 5 million for its holding subsidiary

Gansu Mogao Industrial Development Co., Ltd. announced that, in order to meet production and operational needs, its controlling subsidiary Mogao Jiujiu intends to continue applying for loans not exceeding 5 million yuan from financial institutions, with a term not exceeding one year, fully guaranteed by Mogao Co., Ltd., with a term not exceeding one year, and no guarantees provided by other shareholders. Mogao Jiujiu will provide all fixed assets as counter-guarantee. Previously, Mogao Co., Ltd. has provided a total guarantee of 10 million yuan for it twice, with a current guarantee balance of 5 million yuan. This guarantee will take effect after being reviewed and approved by the fifth meeting of the 11th Board of Directors of the company and signing the contract. As of now, the total external guarantees of the company amount to 45 million yuan, accounting for 5.56% of the most recent audited net assets, with no overdue guarantees