Zhejiang Zhongcheng: Providing a pledge guarantee of 58 million yuan to its holding subsidiary Zhongli Synthesis.

Zhejiang Zhongcheng announced that there has been new progress in providing guarantees for the financing of its controlled subsidiary Zhongli Synthetic Materials. On July 21, 2025, the company signed a "Pledge Contract" with the Zhejiang branch of the Bank of China, pledging a large sum of 58 million yuan in fixed deposits as collateral for the "Working Capital Loan Contract" of Zhongli Synthetic Materials, within the approved limit of 1.25 billion yuan. As of the disclosure date, the company's actual guarantee balance for Zhongli Synthetic Materials is 1.0029 billion yuan, accounting for 43.91% of the net assets at the end of 2024. It is important to note that the latest asset-liability ratio of Zhongli Synthetic Materials exceeds 70%, and the company's guarantee amount exceeds 50% of the net assets, posing a guarantee risk. The company and its subsidiaries have no overdue or litigation-related guarantee situations.