Announcement by Zhejiang Huazheng New Materials Co., Ltd. on Providing Guarantees for Controlling Subsidiaries

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Securities Code: 603186 Stock Abbreviation: Huazheng New Materials Announcement No.: 2026-018

Zhejiang Huazheng New Materials Co., Ltd. Announcement on Providing Guarantees for Subsidiaries

The company’s board of directors and all directors guarantee that the content of this announcement does not contain any false records, misleading statements, or major omissions, and they bear legal responsibility for the authenticity, accuracy, and completeness of its content.

Important Content Highlights:

● Guarantee objects and basic information

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● Total guarantees provided

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1. Overview of Guarantee Situation

（1） Basic Guarantee Information

Zhejiang Huazheng New Materials Co., Ltd. (hereinafter referred to as “the Company”) has signed guarantee contracts with the following banks on March 18, 2026, to support the operational development of its wholly-owned subsidiaries: Zhuhai Huazheng New Materials Co., Ltd. (hereinafter “Zhuhai Huazheng”), Hangzhou Huazheng New Materials Co., Ltd. (hereinafter “Hangzhou Huazheng”), Zhejiang Huju Fused Materials Co., Ltd. (hereinafter “Zhejiang Huju”), Hangzhou Lian Sheng Insulation Materials Co., Ltd. (hereinafter “Lian Sheng Insulation”), and the controlling subsidiary Hangzhou Juehao Technology Co., Ltd. (hereinafter “Juehao Technology”), according to their funding needs.

1. The Company signed a “Maximum Guarantee Contract” with Shanghai Pudong Development Bank Co., Ltd., Zhuhai Branch (“SPD Bank Zhuhai Branch”), providing joint liability guarantee for credit facilities with a maximum amount of 150 million yuan for Zhuhai Huazheng. The guarantee period is calculated separately for each debt, from the date the debt contract’s performance period expires until three years after the expiration date of the debt contract. No counter-guarantee is provided for this guarantee.

2. The Company signed a “Maximum Guarantee Contract” with Ningbo Bank Co., Ltd., Hangzhou Branch (“Ningbo Bank Hangzhou Branch”), providing joint liability guarantee for credit facilities with a maximum amount of 50 million yuan for Zhuhai Huazheng. The guarantee period is two years from the debt’s performance period expiration date as stipulated in the main contract; if the debt is due in installments, the guarantee period for each installment is two years from its respective due date. No counter-guarantee is provided.

3. The Company signed a “Maximum Guarantee Contract” with Agricultural Bank of China, Hangzhou Yuhang Branch (“Agricultural Bank Hangzhou Yuhang Branch”), providing joint liability guarantee for credit facilities with a maximum amount of 200 million yuan for Hangzhou Huazheng. The guarantee period is three years from the expiration of the debt’s performance period, calculated separately for each main contract. If the main contract involves phased debt repayment, the guarantee period is three years from the final repayment due date. No counter-guarantee is provided.

4. The Company signed a “Maximum Guarantee Contract” with Ningbo Bank Hangzhou Branch (“Ningbo Bank Hangzhou Branch”), providing joint liability guarantee for credit facilities with a maximum amount of 10 million yuan for Zhejiang Huju. The guarantee period is two years from the debt’s performance period expiration date, with each installment’s guarantee period calculated separately. No counter-guarantee is provided.

5. The Company signed a “Maximum Unconditional Guarantee Letter” with Hangzhou Branch of China Merchants Bank (“CMBC Hangzhou Branch”), providing joint liability guarantee for credit facilities with a maximum amount of 30 million yuan for Zhejiang Huju. The guarantee period is from the effective date of this guarantee letter until three years after the maturity date of each loan or receivable under the “Credit Agreement,” or three years after each advance date if the credit is extended. If any specific credit is renewed, the guarantee period extends until three years after the extended maturity date. No counter-guarantee is provided.

6. The Company signed a “Maximum Guarantee Contract” with Shanghai Pudong Development Bank Co., Ltd., Hangzhou Branch (“SPD Bank Hangzhou Branch”), providing joint liability guarantee for credit facilities with a maximum amount of 20 million yuan for Lian Sheng Insulation. The guarantee period is calculated separately for each debt, from the date the debt contract’s performance period expires until three years after the expiration date. No counter-guarantee is provided.

7. The Company signed a “Maximum Guarantee Contract” with Agricultural Bank of China, Hangzhou Yuhang Branch (“Agricultural Bank Hangzhou Yuhang”), providing joint liability guarantee for credit facilities with a maximum amount of 40 million yuan for Lian Sheng Insulation. The guarantee period is three years from the debt’s performance period expiration date, calculated separately for each main contract. If the main contract involves phased debt repayment, the guarantee period is three years from the final repayment due date. No counter-guarantee is provided.

8. The Company signed a “Maximum Guarantee Contract” with Hangzhou Bank Co., Ltd., Yuhang Baota Branch (“Hangzhou Bank Yuhang Baota”), providing joint liability guarantee for credit facilities with a maximum amount of 44 million yuan for Lian Sheng Insulation. The guarantee period is calculated separately for each financing, from the date the debt’s performance period expires until three years after the due date (or earlier if the contract is terminated early due to legal or contractual reasons). No counter-guarantee is provided.

9. The Company signed a “Maximum Guarantee Contract” with Hangzhou Bank Co., Ltd., Yuhang Branch (“Hangzhou Bank Yuhang”), providing joint liability guarantee for credit facilities with a maximum amount of 11 million yuan for Juehao Technology. The guarantee period is three years from the debt’s performance period expiration date, calculated separately for each financing. No counter-guarantee is provided. The other shareholders of Juehao Technology are employees’ shareholding platform Hangzhou Juexin Investment Partnership (Limited Partnership), holding 30% of its equity, and have not provided guarantees for this bank credit.

（2） Internal Decision-Making Procedures

The Company held the 15th meeting of the fifth session of the Board of Directors on March 17, 2025, and the 2024 annual general meeting of shareholders on April 10, 2025, to review and approve the “Proposal on Guarantees Expected to Be Provided by the Company in 2025,” agreeing to guarantee the credit applications of subsidiaries within the scope of consolidation, with a total guarantee limit of up to 4.5 billion yuan. The guarantee limit for subsidiaries with a debt ratio exceeding 70% is up to 2.537 billion yuan; for those with a debt ratio not exceeding 70%, up to 1.963 billion yuan. The proposal explicitly states guarantees for Zhuhai Huazheng (180 million yuan), Hangzhou Huazheng (162.8 million yuan), Zhejiang Huju (45.5 million yuan), Lian Sheng Insulation (150 million yuan), and Juehao Technology (20 million yuan). The authorization period is from the approval date of the 2024 annual general meeting until the convening of the 2025 annual general meeting. Details are disclosed in the “Announcement on the Company’s Guarantee Plan for 2025” published on March 18, 2025, on the Shanghai Stock Exchange website (www.sse.com.cn) and designated disclosure media (Announcement No.: 2025-021).

The guarantees within the approved scope of the above board and shareholder meetings do not require further review procedures.

Prior to this guarantee, the balance of guarantees provided by the Company for Zhuhai Huazheng was 668.131 billion yuan; after this guarantee, the balance remains 668.131 billion yuan, with available guarantee capacity of 113.186 billion yuan.

Prior to this guarantee, the balance of guarantees for Hangzhou Huazheng was 376.692 billion yuan; after, it remains 376.692 billion yuan, with available guarantee capacity of 125.130 billion yuan.

Prior to this guarantee, the guarantee balance for Zhejiang Huju was 170.062 billion yuan; after, it remains 170.062 billion yuan, with available guarantee capacity of 28.493 billion yuan.

Prior to this guarantee, the guarantee balance for Lian Sheng Insulation was 88.936 billion yuan; after, it remains 88.936 billion yuan, with available guarantee capacity of 6.106 billion yuan.

Prior to this guarantee, the guarantee balance for Juehao Technology was 10 million yuan; after, it remains 10 million yuan, with available guarantee capacity of 10 million yuan.

2. Basic Information of the Guarantor

（1） Basic Information

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3. Main Contents of the Guarantee Agreements

（1） Guarantee between the Company and SPD Bank Zhuhai Branch for Zhuhai Huazheng

Creditor: Shanghai Pudong Development Bank Co., Ltd., Zhuhai Branch

Guarantor: Zhejiang Huazheng New Materials Co., Ltd.

Debtor: Zhuhai Huazheng New Materials Co., Ltd.

1. Guarantee amount: Up to 150 million yuan

2. Guarantee period: Calculated separately for each debt, from the date the debt’s performance period expires until three years after that date.

3. Guarantee scope: Includes the principal of the main debt, interest (including interest, penalty interest, and compound interest), late fees, damages, service charges, and other costs incurred for signing or performing this contract, as well as costs related to the realization of the guarantee rights and collection of the debt (including but not limited to litigation fees, lawyer fees, travel expenses), and any additional guarantee deposits required by the creditor.

4. Guarantee method: Joint liability guarantee

（2） Guarantee between the Company and Ningbo Bank Hangzhou Branch for Zhuhai Huazheng

Creditor: Ningbo Bank Co., Ltd., Hangzhou Branch

Guarantor: Zhejiang Huazheng New Materials Co., Ltd.

Debtor: Zhuhai Huazheng New Materials Co., Ltd.

1. Guarantee amount: Up to 50 million yuan

2. Guarantee period: Two years from the debt’s performance period expiration date as stipulated in the main contract; if the debt is due in installments, the guarantee period for each installment is two years from its respective due date.

3. Guarantee scope: Includes principal and interest of the main debt, overdue interest, compound interest, penalty interest, damages, litigation costs, preservation fees, enforcement fees, lawyer fees, travel expenses, and all other costs to realize the debt.

4. Guarantee method: Joint liability guarantee

（3） Guarantee between the Company and Agricultural Bank of China Hangzhou Yuhang Branch for Hangzhou Huazheng

Creditor: Agricultural Bank of China Co., Ltd., Hangzhou Yuhang Branch

Guarantor: Zhejiang Huazheng New Materials Co., Ltd.

Debtor: Hangzhou Huazheng New Materials Co., Ltd.

1. Guarantee amount: Up to 200 million yuan

2. Guarantee period: Three years from the expiration of the debt’s performance period, calculated separately for each main contract. If the contract involves phased debt repayment, the guarantee period is three years from the final repayment due date.

3. Guarantee scope: Includes principal, interest, penalty interest, compound interest, damages, damages, late fees, and all costs related to realizing the debt, including legal and arbitration fees, lawyer fees, and other expenses.

4. Guarantee method: Joint liability guarantee

（4） Guarantee between the Company and Zhejiang Huju and Ningbo Bank Hangzhou Branch for Zhejiang Huju

Creditor: Ningbo Bank Co., Ltd., Hangzhou Branch

Guarantor: Zhejiang Huazheng New Materials Co., Ltd.

Debtor: Zhejiang Huju Fused Materials Co., Ltd.

1. Guarantee amount: Up to 10 million yuan

2. Guarantee period: Two years from the debt’s performance period expiration date, with each installment calculated separately. If the debt involves phased repayment, the guarantee period is two years from the final due date.

3. Guarantee scope: Includes principal and interest of the main debt, overdue interest, compound interest, penalty interest, damages, damages, litigation costs, preservation fees, enforcement fees, lawyer fees, travel expenses, and all other costs to realize the debt, as well as double interest during delays and other payable expenses.

4. Guarantee method: Joint liability guarantee

（5） Guarantee between the Company and CMBC Hangzhou Branch for Zhejiang Huju

Creditor: China Merchants Bank Co., Ltd., Hangzhou Branch

Guarantor: Zhejiang Huazheng New Materials Co., Ltd.

Debtor: Zhejiang Huju Fused Materials Co., Ltd.

1. Guarantee amount: Up to 30 million yuan

2. Guarantee period: From the effective date of this guarantee until three years after the due date of each loan or receivable under the “Credit Agreement,” or three years after each advance date if extended. If any credit is renewed, the guarantee period extends accordingly.

3. Guarantee scope: The sum of the loan and other credit principal balances within the credit limit, including interest, penalty interest, compound interest, damages, late fees, factoring costs, costs of realizing the guarantee rights and debt, and other related expenses.

4. Guarantee method: Joint liability guarantee

（6） Guarantee between the Company and Lian Sheng Insulation and SPD Bank Hangzhou Branch for Zhejiang Huju

Creditor: Shanghai Pudong Development Bank Co., Ltd., Hangzhou Branch

Guarantor: Zhejiang Huazheng New Materials Co., Ltd.

Debtor: Hangzhou Lian Sheng Insulation Materials Co., Ltd.

1. Guarantee amount: Up to 20 million yuan

2. Guarantee period: Calculated separately for each debt, from the date the debt’s performance period expires until three years after that date.

3. Guarantee scope: Includes principal, interest (including interest, penalty interest, and compound interest), late fees, damages, service charges, and other costs for realizing the guarantee rights and debt, including litigation fees, lawyer fees, travel expenses, and any additional guarantee deposits required by the creditor.

4. Guarantee method: Joint liability guarantee

（7） Guarantee between the Company and Agriculture Bank of China Hangzhou Yuhang for Hangzhou Lian Sheng Insulation

Creditor: Agricultural Bank of China Co., Ltd., Hangzhou Yuhang Branch

Guarantor: Zhejiang Huazheng New Materials Co., Ltd.

Debtor: Hangzhou Lian Sheng Insulation Materials Co., Ltd.

1. Guarantee amount: Up to 40 million yuan

2. Guarantee period: Three years from the debt’s performance period expiration date, calculated separately for each main contract. If phased repayment applies, guarantee is three years from the final due date.

3. Guarantee scope: Principal, interest, penalty interest, compound interest, damages, late fees, and all costs related to debt realization, including legal and arbitration fees, lawyer fees, and other expenses.

4. Guarantee method: Joint liability guarantee

（8） Guarantee between the Company and Hangzhou Bank Yuhang Baota Branch for Lian Sheng Insulation

Creditor: Hangzhou Bank Co., Ltd., Yuhang Baota Branch

Guarantor: Zhejiang Huazheng New Materials Co., Ltd.

Debtor: Hangzhou Lian Sheng Insulation Materials Co., Ltd.

1. Guarantee amount: Up to 44 million yuan

2. Guarantee period: Calculated separately for each financing, from the date the debt’s performance period expires until three years after that date, or earlier if the contract is terminated early due to legal or contractual reasons.

3. Guarantee scope: All principal (including advances), interest, compound interest, penalty interest, late payment interest during enforcement, damages, compensation, costs of realizing the debt and guarantee rights (including lawyer fees, travel expenses), and all other payable expenses under the main contract.

4. Guarantee method: Joint liability guarantee

（9） Guarantee between the Company and Yuhang Yejin Technology Co., Ltd. and Hangzhou Bank Yuhang Branch for Juehao Technology

Creditor: Hangzhou Bank Co., Ltd., Yuhang Branch

Guarantor: Zhejiang Huazheng New Materials Co., Ltd.

Debtor: Hangzhou Juehao Technology Co., Ltd.

1. Guarantee amount: Up to 11 million yuan

2. Guarantee period: Calculated separately for each financing, from the date the debtor’s performance period expires until three years after that date, or earlier if the contract is terminated early due to legal or contractual reasons.

3. Guarantee scope: All principal (including advances), interest, compound interest, penalty interest, late payment interest, damages, compensation, costs of realizing the debt and guarantee rights (including lawyer fees, travel expenses), and all other payable expenses.

4. Guarantee method: Joint liability guarantee

5. Other Shareholders’ Guarantee Status: The remaining shareholders of Juehao Technology are employees’ shareholding platform Hangzhou Juexin Investment Partnership (Limited Partnership), holding 30% of its equity, and have not provided guarantees for this bank credit.

The necessity and reasonableness of the guarantees

All guarantees are provided by the Company for subsidiaries within the scope of consolidated financial statements, aimed at meeting their daily operational needs, supporting stable operation and long-term development, and are in line with the overall development of the Company. They comply with relevant laws, regulations, and the Company’s articles of association, and do not harm the interests of the Company or shareholders. The guaranteed entities operate normally, have good credit, and the Company maintains sufficient control over them; the guarantee risks are within a manageable range.

Board Opinions

The 15th meeting of the fifth session of the Board of Directors and the 2024 annual general meeting of shareholders approved the “Proposal on Guarantees Expected to Be Provided by the Company in 2025.” The Board believes that providing guarantees for subsidiaries within the scope of consolidation considers the operational needs of the Company and its subsidiaries, promotes their development, and aligns with the Company’s overall strategy. The guarantees are based on comprehensive analysis of subsidiaries’ profitability, debt-paying ability, and risks, are in accordance with laws, regulations, and the Articles of Association, and do not harm shareholder interests. The guarantee risks are within a controllable scope.

Total External Guarantees and Overdue Guarantees

As of the date of this announcement, the total external guarantee amount by the Company and its subsidiaries is 3,189.7 million yuan (including this guarantee), accounting for 219.18% of the Company’s audited net assets in 2024; guarantees provided to subsidiaries amount to 1,373.8 million yuan, accounting for 94.40% of the audited net assets in 2024. All guarantees are within the scope of the Company’s consolidated subsidiaries, and there are no overdue guarantees or other external guarantees. The Company and subsidiaries have no overdue guarantee issues.

This announcement is hereby made.

The Board of Zhejiang Huazheng New Materials Co., Ltd.

March 20, 2026