Overview of 1. guarantees

1. Whereas, Xituo Energy Group Co., Ltd. (hereinafter referred to as "Xituo Energy"), a holding subsidiary of Shouhang High-tech Energy Technology Co., Ltd. (hereinafter referred to as "the company" or "Shouhang High-tech"), applied for a bank loan of 6.7 million yuan to Xinjiang Bank Co., Ltd. Urumqi Shayibaki District Branch (hereinafter referred to as "Xinjiang Bank Shayibaki District Branch"), (hereinafter referred to as "Horgos Technology"), a wholly-owned grandson of the Company, provides mortgage guarantee for the bank loan with its real estate (construction in progress, no title certificate for the time being). For details, please refer to the "Announcement on Subsidiaries' Guarantees for Subsidiaries' Subsidiaries' and Subsidiaries' Guarantees for Subsidiaries'" (Announcement No. 2022-062) disclosed by the Company on August 29, 2022.

At the expiration of the above-mentioned loan period, Xituo Energy and Xinjiang Bank Shayibake District Sub-branch reached a renewal agreement, Xinjiang Bank Shayibake District Sub-branch agreed to the same amount of Xituo Energy renewal loan.

2. According to the needs of business development, Xituo Energy, the company's holding subsidiary, continues to apply for a bank loan of 6.7 million yuan from Xinjiang Bank's Shayibaku District Sub-branch. Due to the expiration of the above-mentioned guarantee period, Sun Company Horgos Technology decided to continue to provide mortgage guarantee for this loan renewal of Xituo Energy.

3. According to the "Shenzhen Stock Exchange Listed Companies Self-Regulatory Guidelines No. 1-Standardized Operation of Listed Companies on the Main Board" and other relevant regulations, the subject of this guarantee is the legal entity within the scope of the company's consolidated statements, and the company's wholly-owned grandson company Horgos Technology has fulfilled the internal approval procedures and does not need to be submitted to the company's board of directors and shareholders meeting for deliberation.

II. Basic information of the guaranteed person

1. Name of Guarantor: Xituo Energy Group Co., Ltd.

2. Date of Establishment: September 02, 2008

3. Place of registration: Room 2003, Kangyuan Wealth Center, 223 Beijing South Road, Urumqi High-tech Zone (New City District), Xinjiang

4. Legal Representative: Chen Shuangta

5. Registered capital: two hundred and four thousand two hundred and four thousand four hundred yuan only

6. Business scope: licensed items: power supply business; Certification services; Internet information services; Installation, maintenance and testing of power transmission, power supply and power receiving facilities; Special equipment design; Special equipment manufacturing; Installation, transformation and repair of special equipment; Mineral resources exploration; Mining of mineral resources (non-coal mines); Geological exploration of metal and non-metal mineral resources; International road freight transportation; road freight transport (excluding dangerous goods); construction engineering design; construction engineering survey; construction engineering construction; construction engineering supervision. (For projects subject to approval according to law, business activities can only be carried out after approval by relevant departments, and specific business projects shall be subject to approval documents or license certificates of relevant departments) General projects: research and development of key technologies for waste heat power generation; Research and development of waste heat, pressure and gas utilization technology; Research and development of high-efficiency and energy-saving technologies in the power industry; Research and development of carbon emission reduction, carbon conversion, carbon capture and carbon storage technologies; Environmental protection consulting services; energy-saving management services; engineering management services; forest fire prevention services; goods import and export; technology import and export; power generation technology services; engineering and technology research and experimental development; technical services, technology development, technical consultation, technology exchange, technology transfer, technology promotion; Conference and exhibition services; geological exploration technical services; oil and gas technical services; engineering technical services (except planning management, survey, design, and supervision); optoelectronic device manufacturing; mechanical and electrical equipment manufacturing; thermal production and supply; mechanical and electrical equipment sales; special equipment rental; mechanical equipment rental; special equipment sales; solar thermal power generation equipment sales; software development; solar thermal power generation product sales; solar thermal utilization product Sales; solar thermal utilization equipment sales; solar power generation technical services; digital content production services (excluding publishing and distribution); foreign contracted projects; engineering cost consulting business; Domestic cargo transportation agency; Domestic trade agency; General cargo storage services (excluding items requiring approval such as hazardous chemicals); Land international cargo transportation agency; International cargo transportation agency; Sales of optoelectronic devices; Sales of greenhouse gas emission control equipment; Sales of electronic components and electromechanical components and equipment; Retail of electronic components; Sales of intelligent unmanned aerial vehicles. (With the exception of projects subject to approval in accordance with the law, business activities shall be carried out independently in accordance with the business license)

7. Relationship between the guarantor and the guarantor: The guarantor, Xituo Energy, is a holding subsidiary of the Company, and the guarantor, Horgos Technology, is a wholly-owned subsidiary of the guarantor, Xituo Energy. Horgos Technology and Xituo Energy are both legal entities within the scope of the Company's consolidated statements.

8. Key financial data indicators:

Main financial indicators	As of December 31, 2022 (unit: yuan)	As of June 30, 2023 (unaudited) (in dollars)
Total assets	487,699,687.54	481,803,775.89
Total liabilities	309,578,976.40	308,465,199.37
Net assets	178,120,711.14	173,338,576.52
Operating income	59,399,270.04	23,596,669.48
Total profit	-24,514,095.05	-4,851,860.29
Net profit	-24,408,554.13	-4,782,134.62

 

Third, the main content of the mortgage guarantee.

1, guarantee mode: real estate (construction in progress, no title certificate) mortgage guarantee;

2. Guarantee period: from the date of signing the guarantee agreement to the date of settlement of the principal and interest of the loan;

3. Guarantee amount: principal and interest of 6.7 million yuan RMB loan;

4. Basic information on mortgaged real estate:

Serial Number	Project Name	Number of layers	House Address	Building area (㎡)
1	Steam engine room	4	No. 30, Immigration Road, Karaoyi Village, Mohul Farm, Horgos City, Yili Prefecture, Xinjiang	1332.84
2	Boiler room	1		1643
3	Circulating water pump house	1		595.35
4	Cooling tower	4		916.04
5	Chemical water workshop	1		918.81
6	Comprehensive office building	4		2364.54
7	Canteen	2		629.07
Total				8399.65

 

IV. Cumulative number of external guarantees and number of overdue guarantees

As of the date of this announcement, the Company's external guarantees within the performance period are:

1. In order to support the development of the subsidiary, the company decided to provide a joint liability guarantee of RMB 109.14 million for the financing of Gulang Longxin Energy Co., Ltd. and Lihuo Energy Co., Ltd.

2. The company provides joint and several liability guarantee for the principal and interest of the loan of 40 million yuan from Sun Company Hami Lijiang Energy Co., Ltd.

3. The company provides joint and several liability guarantee for the loan principal and interest of 10 million yuan of its subsidiary Xituo Energy Group Co., Ltd.

4. The company provides joint and several liability guarantee for the loan principal and interest of 400 million yuan of its subsidiary Shouhang Water Resources Technology Development Co., Ltd.

5. The company provides joint and several liability guarantee for the loan principal and interest of 90 million yuan of its subsidiary Beijing Juxing Xinneng Technology Co., Ltd.

6. The company provides joint and several liability guarantee for the loan principal and interest of 60 million yuan of Hamilliha Energy Co., Ltd.

7. The company provides mortgage guarantee for the loan principal and interest of 8 million yuan of its subsidiary Xituo Energy Group Co., Ltd.

8, the company for the subsidiary Dunhuang Shouhang Energy Saving New Energy Co., Ltd. 1,400 million yuan of financing principal and interest to provide asset transfer and guarantee guarantee.

9. The company provides joint and several liability guarantee for the principal and interest of the 50 million yuan loan of the subsidiary Shouhang Energy Saving Photothermal Technology Co., Ltd., and Tianjin Branch provides asset mortgage guarantee for a house under its name located in Baodi District, Tianjin.

10. The company provides joint and several liability guarantee for the loan principal and interest not exceeding 20 million yuan applied by its subsidiary Xituo Energy Group Co., Ltd.

The total amount of the Company's external guarantees to date is $2187.14 million, representing 41.95 percent of the Company's audited net assets in 2022. The company does not have overdue external guarantees and illegal guarantees, there are no guarantees involving litigation and losses due to the judgment of the guarantee.

It is hereby announced.

 

Shouhang Gaoke Energy Technology Co., Ltd.

Board of Directors

28 August 2023