Xinya Process (Zhejiang) Co., Ltd. Announcement on Providing Guarantees for Bank Credit Applications by Subsidiaries

Securities Code: 002388 Securities Abbreviation: Xinya Process (Rights Protection) Announcement Number: 2026-013

Xinya Process (Zhejiang) Co., Ltd.

Announcement on Providing Guarantee for Subsidiary’s Bank Credit Application

The company and all members of the board of directors guarantee that the content of the announcement is true, accurate, and complete, and bear responsibility for any false records, misleading statements, or significant omissions in the announcement.

Special Reminder:

Xinya Process (Zhejiang) Co., Ltd. (hereinafter referred to as “the company” or “this company”) provides this guarantee for a subsidiary within the scope of the consolidated financial statements, and the asset-liability ratio of the guaranteed party is above 70%. This guarantee is mainly used for the above-mentioned company to apply for credit from the bank or to meet its business development needs, with controllable risks. Investors are advised to pay full attention to the guarantee risks.

I. Overview of the Guarantee Situation

(1) Basic Information of the Guarantee

To meet the needs of daily business development, the company’s subsidiary, Quzhou Yunyan Trading Co., Ltd. (hereinafter referred to as “Yunyan Trading”), has applied for a bank credit of RMB 10 million from Quzhou Branch of Bank of Beijing Co., Ltd. (hereinafter referred to as “Bank of Beijing”), and the company provides joint liability guarantee for this credit.

(2) Review Situation

The company held the 26th meeting of the sixth board of directors on April 27, 2025, and the annual general meeting of shareholders on May 21, 2025, where the proposal on “Applying for Comprehensive Credit Limit and Providing Guarantee for 2025 for the Company and Subsidiaries” was approved. To meet the financing needs of the company and its subsidiaries, and ensuring compliance and controllable risks, the company and its subsidiaries estimate that the guarantee limit for 2025 will not exceed RMB 1.5 billion (including this amount), of which the guarantee limit for parties with an asset-liability ratio not exceeding 70% will not exceed RMB 500 million (including this amount), and the guarantee limit for parties with an asset-liability ratio exceeding 70% will not exceed RMB 1 billion (including this amount). The effective period is from the date of approval by the company’s annual general meeting of shareholders in 2024 until the same proposal is reviewed at the annual general meeting of shareholders in 2025.

For details, please refer to the announcement disclosed by the company on April 29, 2025, on the Giant Tide Information Network (www.cninfo.com.cn) regarding “Applying for Comprehensive Credit Limit and Providing Guarantee for 2025 for the Company and Subsidiaries”.

This credit and guarantee matter is within the external guarantee limit and authorization scope approved at the 2024 annual general meeting of shareholders. The specific guarantee matters that occur have been authorized by the shareholders’ meeting for the company’s management to be responsible for signing (or signing one by one) related guarantee agreements with financial institutions, without the need for a separate meeting of the board of directors or shareholders.

II. Progress of the Guarantee

Regarding Yunyan Trading’s application for bank credit of RMB 10 million, the company signed the “Maximum Guarantee Contract” with Bank of Beijing, and Yunyan Trading applies for financing within the above credit and guarantee scope.

III. Main Content of the Guarantee Agreement

The content of the “Maximum Guarantee Contract” is as follows:

1. Guarantor: Xinya Process (Zhejiang) Co., Ltd.

2. Creditor: Quzhou Branch of Bank of Beijing Co., Ltd.

3. Debtor: Quzhou Yunyan Trading Co., Ltd.

4. Guarantee Method: Joint liability guarantee

5. Scope of Guarantee: All creditor’s rights under the main contract of Bank of Beijing (and other branches of Bank of Beijing Co., Ltd. that acquire creditor status as per the main contract) including the principal creditor’s right (maximum limit of RMB 10 million) as well as interest, penalty interest, compound interest, liquidated damages, damages, and costs for realizing creditor’s rights and guarantee rights (including but not limited to litigation/arbitration fees, assessment/identification/auction disposal fees, attorney fees, investigation and evidence collection fees, travel expenses, and other reasonable expenses), with a total maximum claim amount of RMB 20 million.

6. Guarantee Period: Three years from the expiration of the performance period of the guaranteed debt under the main contract. If the guaranteed debt should be performed in installments, Bank of Beijing has the right to require the guarantor to perform guarantee responsibilities within three years from the expiration of the performance period of each installment of debt.

IV. Basic Information of the Guaranteed Party

Company Name: Quzhou Yunyan Trading Co., Ltd.

Establishment Date: October 17, 2019

Registered Capital: RMB 100 million

Legal Representative: Lu Hao

Registered Address: Room 506, Building 13-2, Spring City Road, Quzhou, Zhejiang Province

Business Scope: General projects: sales of specialized chemical products (excluding hazardous chemicals); sales of chemical products (excluding licensed chemical products); sales of textiles and raw materials; sales of non-ferrous metal alloys; sales of textiles; sales of power electronic components; sales of arts and crafts and ceremonial supplies (excluding ivory and its products); sales of gold and silver products; retail of jewelry; wholesale of electronic components; sales of electronic specialized materials; sales of electronic specialized equipment; sales of metal materials; sales of non-metallic ores and products; sales of coal and products; sales of electronic products; sales of machinery and equipment; sales of electrical instruments and meters; sales of instruments and meters; sales of daily necessities; sales of daily goods; technology import and export; goods import and export; research and development of new material technology; technical services, technical development, technical consulting, technical exchanges, technology transfer, and technology promotion; information consulting services (excluding licensed information consulting services); information technology consulting services; corporate management consulting; corporate management (conducting business activities independently according to the business license, except for projects that require approval by law).

Licensed Projects: Operation of hazardous chemicals (projects that require approval according to law can only be carried out after approval from relevant departments, and specific business projects are subject to the approval results).

Relationship with the Company: It is a wholly-owned subsidiary of the company (Zhejiang Xinya Zhongning New Energy Co., Ltd. holds 100% of its shares, and Zhejiang Xinya Zhongning New Energy Co., Ltd. is a wholly-owned subsidiary of the company).

Recent Financial Data for the Last Year and Period:

As of December 31, 2024, Yunyan Trading had total assets of RMB 609,590,068.15, net assets of RMB 108,445,899.44, operating income for 2024 of RMB 37,645,992.45, and net profit of RMB 2,472,788.77.

As of June 30, 2025, Yunyan Trading had total assets of RMB 616,941,172.83, net assets of RMB 108,747,579.98, operating income for the first half of 2025 of RMB 8,448,344.24, and net profit of RMB 287,689.97.

Among the above financial data, the data as of December 31, 2024, and for the year 2024 has been audited, while the data as of June 30, 2025, and for the first half of 2025 has not been audited.

According to inquiry, Yunyan Trading is not a dishonest party subject to enforcement.

V. Total Number of External Guarantees and Number of Overdue Guarantees

As of the date of this announcement, the company’s effective external guarantee limit approved is RMB 1.5 billion, and the total balance of external guarantees is RMB 535.65 million, accounting for 55.28% of the company’s audited net assets for 2024.

On March 6, 2026, the company disclosed the announcement on “Partial Debt Overdue and Guarantee Progress of Subsidiary” (Announcement Number: 2026-010), stating that the company’s wholly-owned subsidiary, Zhejiang Xinya Zhongning New Energy Co., Ltd. (hereinafter referred to as “Xinya Zhongning”), has a principal loan of RMB 240 million that has not been repaid upon maturity, of which Xinya Zhongning pledged 51% of its shares in Xinya Zhongning New Material Technology (Quzhou) Co., Ltd. (formerly known as Xinya Shanshan New Material Technology (Quzhou) Co., Ltd.) to Quzhou Intelligent Manufacturing Industry Investment Group Co., Ltd. (hereinafter referred to as “Quzhou Industry Investment”); the company has provided supplementary mortgage guarantees for this loan with related real estate and corresponding land use rights.

Apart from the above guarantees, the company (including subsidiaries) has no other external guarantee matters, nor any other overdue guarantees, guarantees involving litigation, or losses incurred due to being ruled against in guarantees.

VI. Impact on the Company

This joint liability guarantee for the subsidiary’s bank credit application is beneficial for meeting the funding needs of the subsidiary’s daily production and business development. The financial risks of this guarantee matter are within the company’s controllable range and will not adversely affect the company’s normal operations and business development, nor will it harm the interests of the company and its shareholders, especially small and medium shareholders.

VII. Documents for Reference

“Maximum Guarantee Contract”

This announcement is hereby made.

Xinya Process (Zhejiang) Co., Ltd.

Board of Directors

March 27, 2026