GCL-Poly Energy Announces Progress on Subsidiary Guarantee Arrangement

Announcement on the Progress of Guarantee Provision for Subsidiaries by GCL-Poly Energy Holdings Limited

On April 27, 2025, GCL-Poly Energy Holdings Limited (hereinafter referred to as “GCL-Poly” or “the Company”) convened the tenth meeting of the sixth board of directors, followed by the annual general meeting on May 20, 2025. During these meetings, the proposal regarding the Company’s application for comprehensive credit facilities from financing institutions and the provision of guarantees for its subsidiaries was approved. It was agreed that for the year 2025, the Company and its subsidiaries would apply for a total comprehensive credit limit not exceeding RMB 11.2 billion, with the Company guaranteeing no more than RMB 8.87 billion for its subsidiaries. Additionally, the subsidiaries of the Company would apply for guarantees up to RMB 230 million, while the Company’s controlling subsidiaries would apply for guarantees not exceeding RMB 200 million. These comprehensive credit and guarantee limits will be effective for one year starting from the date of approval at the annual general meeting of 2024. For more details, please refer to the announcements published in the designated information disclosure media, including Securities Daily, China Securities Journal, and Giant Tide Information Network.

Progress of Guarantee Matters

The Company has signed a Guarantee Contract with Chongqing Xianyu Financial Leasing Co., Ltd. (hereinafter referred to as “the Creditor”) to provide a joint liability guarantee for the Financing Lease Contract signed between the subsidiary Wuhu GCL-Poly New Energy Technology Co., Ltd. (hereinafter referred to as “the Debtor” or “Wuhu GCL-Poly”) and the Creditor. The guaranteed principal of the lease is RMB 14.1971 million. This guarantee is within the approved limit, and the Company is not required to go through any further review processes.

Basic Information of the Guaranteed Party

• Company Name: Wuhu GCL-Poly New Energy Technology Co., Ltd.
• Establishment Date: October 25, 2022
• Registered Address: No. 18, Jiuzhi Avenue, Anhui Xinwu Economic Development Zone, Wanzhi District, Wuhu City, Anhui Province
• Legal Representative: Shi Jiawei
• Registered Capital: RMB 800 million
• Business Scope: General projects include solar power generation technology services; sales and manufacturing of photovoltaic equipment and components; battery manufacturing and sales; electronic component manufacturing; technology consultation and services; import and export of goods; and other legally permitted projects.
• Main Financial Indicators: (Units: RMB 10,000; 2024 fiscal data audited, Q1 2025 unaudited)
• Equity Structure: The Company indirectly holds 80.71% of the equity in Wuhu GCL-Poly New Energy Technology Co., Ltd.
• Other Notes: Wuhu GCL-Poly New Energy Technology Co., Ltd. is not listed as a dishonest executor.

Main Content of the Guarantee Agreement

• Creditor (Party A): Chongqing Xianyu Financial Leasing Co., Ltd.
• Guarantor (Party B): GCL-Poly Energy Holdings Limited
• Debtor: Wuhu GCL-Poly New Energy Technology Co., Ltd.
• Guaranteed Amount: The principal of the lease is RMB 14.1971 million
• Guarantee Method: Joint liability guarantee
• Lease Term: 48 months
• Scope of Guarantee: Includes rent, expenses advanced, purchase option price, deposit, as well as penalties, damages, and interest on overdue debts.
• Guarantee Period: Three years from the maturity date of the main debt.

Total External Guarantees and Overdue Guarantees

As of the date of this announcement, the total amount of guarantees provided by the Company for its controlling subsidiaries within the consolidated financial statements is RMB 93 billion. After this guarantee provision, the total balance of external guarantees by the Company and its controlling subsidiaries is RMB 45.9672 billion, accounting for 192.88% of the Company’s latest audited net assets. The guarantee balance provided by the Company for the subsidiary Wuhu GCL-Poly is RMB 11.697871 million, which accounts for 49.08% of the Company’s latest audited net assets. The Company and its subsidiaries have not provided guarantees for entities outside the consolidated financial statements. There are no overdue external guarantees, no guarantees involved in litigation, and no situations where the Company has incurred losses due to guarantee judgments.

This announcement is hereby made.

Board of Directors of GCL-Poly Energy Holdings Limited
May 23, 2025