Securities code: 600237 Securities abbreviation: Tongfeng Electronic Announcement Number: Lin 2021-004

Anhui Tongfeng Electronics Co., Ltd. is expected to provide a guarantee for the wholly-owned and controlling subsidiaries in 2021 announcement

The board of directors and all the directors of the Company warrant that there is no false record, misleading statement or material omission in the content of this announcement, and bear individual and joint liability for the authenticity, accuracy and completeness of the content.

Important content Tips:

● Guaranteed: The wholly-owned and holding subsidiaries of Anhui Tongfeng Electronics Co., LTD. (hereinafter referred to as the "Company") : Wenzhou Tongfeng Electronic Materials Co., LTD., Anhui Tongfeng World Trade Import and Export Co., LTD., Tongling Fenghua Electronic Co., LTD., Anhui Tongai Electronic Materials Co., LTD。

● Guarantee amount: The Company is expected to provide a comprehensive credit guarantee with a total limit of no more than 80 million yuan for the wholly-owned and controlling subsidiaries in the next year for the guarantee of working capital loans, bank acceptance and letter of guarantee and other working capital revolving business types of the wholly-owned and controlling subsidiaries.

● Whether there is a counter-guarantee in this guarantee: The holding subsidiaries Fenghua Electronics and Tongai Electronics have issued a counter-guarantee commitment letter for the company.

● Total external guarantee: RMB 19.1626 million (excluding this guarantee)

● Accumulative number of overdue guarantees: none

I. Overview of the guarantee situation

In order to meet the production and operation needs of the relevant wholly-owned and controlling subsidiaries, based on their business needs and credit plan, the Company expects that in the next one year, For Wenzhou Tongfeng Electronic Materials Co., LTD. (hereinafter referred to as "Wenzhou Tongfeng"), Anhui Tongfeng Shimao Import and Export Co., LTD. (hereinafter referred to as "Tongfeng Shimao"), Tongling Fenghua Electronics Co., LTD. (hereinafter referred to as "Fenghua Electronics") and Anhui Tongai Electronic Materials Co., LTD. (hereinafter referred to as "Tongai Electronics"), the total amount of comprehensive services shall not exceed RMB 80 million Joint credit guarantee is used for the guarantee of working capital revolving business types such as working capital loans, bank acceptance and letter of guarantee issued by subsidiaries. The Company anticipates that the specific arrangements for providing guarantees to its wholly-owned and majority-owned subsidiaries in the coming year are as follows:

After deliberation and approval by the Board of Directors of the Company, all guarantee matters occurring within the scope of the aforementioned guarantee amount within the authorization period will not be separately submitted to the Board of Directors for deliberation. The chairman of the Company shall sign and approve the relevant guarantee matters occurring within the scope of the aforementioned guarantee amount and sign the relevant guarantee documents. This authorization guarantee shall be valid for one year from the date of approval by the Board of Directors.

On February 5, 2021, the Company held the third meeting of the ninth Board of Directors to review and approve the "Proposal on the expected 2021 guarantee amount for wholly-owned and controlling subsidiaries". The independent director of the company expressed independent opinions on the proposal. The independent director believed that the anticipated and authorized matters were in line with the Company Law, Notice on Standardizing the Foreign Guarantee Behavior of Listed Companies and other relevant laws, regulations, normative documents and the Articles of Association, and were in line with the business development needs of subsidiaries and conducive to improving the operating efficiency of the company. The guaranteed companies are all within the scope of the consolidated statements of the company, their credit standing is good, the guarantee risk is within the controllable range, and there is no harm to the interests of the company and shareholders, especially minority shareholders. The independent directors agreed to the Motion Regarding Guarantees for wholly-owned and majority-owned Subsidiaries expected in 2021.

According to the relevant provisions of the Articles of Association, the guarantee provided by the company does not exceed the authority of the board of directors for approval, and does not need to be submitted to the general meeting of shareholders of the company for approval.

Ii. Basic Information of the Guaranteed

(1) Wenzhou Tongfeng

1. Company name: Wenzhou Tongfeng Electronic Materials Co., LTD

2. Registered capital: 35 million RMB

3. Legal Representative: Lin Zheng

4. Type of company: limited liability company (sole legal person invested or held by no natural person)

5. Date of establishment: August 24, 2001

6. Business Scope: Production and sales of metallized films and related electronic materials.

7. Address: Dongmeng Industrial Zone, Wuniu Town, Yongjia County, Wenzhou City, Zhejiang Province

8. Main financial indicators

As of September 30, 2020, the company's total assets are 61,781,400 yuan, total liabilities are 20,829,300 yuan, the operating income from January to September 2020 is 2,726800 yuan, the net profit is 563,100 yuan (the above data is unaudited). As of December 31, 2019, the company's audited total assets were 71,140,300 yuan, total liabilities were 30,751,300 yuan, and in 2019, the operating income was 432,231 yuan, and the net profit was 504,200 yuan.

The Company's interest in Wenzhou Tongfeng is 100%.

(2) Copper Peak Trade Center

1. Company name: Anhui Tongfeng World Trade Import and Export Co., LTD

2. Registered capital: 40 million RMB

3. Legal Representative: Bao Junhua

4. Type of company: limited liability company (sole legal person invested or held by no natural person)

5. Date of establishment: April 29, 2008

6. Business scope: self-operated and agent import and export trade of all kinds of commodities and technologies, import, processing, compensation trade of electronics, chemical industry, machinery equipment, auto parts (except import and export commodities and technologies restricted or prohibited by the state, involving licenses or special approval with valid certificates).

7. Address: No.399, West Section of Cuihu Third Road, Tongling City, Anhui Province

8. Main financial indicators

As of September 30, 2020, the company's total assets are 82,944,300 yuan, total liabilities are 57.90.02 million yuan, the operating income from January to September 2020 is 133,095,000 yuan, the net profit is -3.191 million yuan (the above data is unaudited). As of December 31, 2019, the company's audited total assets were 11,515,400 yuan, total liabilities were 8,6980,200 yuan, the operating income in 2019 was 13,680.04 yuan, the net profit was 6,851,600 yuan.

The company's interest in Copper Peak World Trade Center is 100%.

(3) Feng Hua Electronics

1. Company Name: Tongling Fenghua Electronics Co., LTD

2. Registered capital: 50 million Yuan

3. Legal Representative: Bao Junhua

4. Company type: Other limited liability companies

5. Establishment date: December 16, 2002

6. Business scope: Development, production and sales of quartz crystal frequency devices, development, production and sales of electronic devices, self-support and agent import and export business of all kinds of commodities and technologies (except the commodities and technologies that are restricted or prohibited by the state).

7. Address: Tongfeng Industrial Park, Tongling Economic and Technological Development Zone, Anhui Province

8. Main financial indicators

As of September 30, 2020, the company's total assets are 10,574,900 yuan, total liabilities are 73,168,200 yuan, the operating income from January to September 2020 is 25.329,800 yuan, the net profit is 664,100 yuan (the above data is unaudited). As of December 31, 2019, the company's audited total assets were 87,450,500 yuan, total liabilities were 55.539,900 yuan, the operating income in 2019 was 28.248,900 yuan, the net profit was -2,499,400 yuan.

The Company's interest in Feng Hua Electronics is 98.76%.

(4) Copper loves electrons

1. Company name: Anhui Tongai Electronic Materials Co., LTD

2. Registered capital: $20.2 million

3. Legal Representative: Bao Junhua

4. Company type: Limited liability company (Sino-foreign joint venture)

5. Establishment date: December 07, 2004

6. Business scope: Production and sales of BOPET films and other electronic materials for capacitors.

7. Address: Tongfeng Electronic Industrial Park, Tongling Economic and Technological Development Zone, Anhui Province

8. Main financial indicators

As of September 30, 2020, the company's total assets are 15,881,400 yuan, total liabilities are 10,989,300 yuan, the operating income from January to September 2020 is 79.209,100 yuan, the net profit is 11,659,000 yuan (the above data is unaudited). As of December 31, 2019, the company's audited total assets of 162,4041 yuan, total liabilities of 26.17100 yuan, 2019 revenue of 121,955,600 yuan, the net profit of 14.418,100 yuan.

Tongai Electronics is jointly invested by the Company and Korea SKC Co., LTD. The Company has a 75% interest in Tongai Electronics.

Iii. Main contents of the guarantee Agreement

The additional guarantee agreement under this guarantee limit has not yet been signed. The main terms, actual guarantee amount, type and term, etc. shall be determined by the Company and its subsidiaries through negotiation with banks and other financial institutions within the aforesaid limit according to business needs.

Iv. Opinions of the Board of Directors

The guarantee amount provided by the Company for the wholly-owned and controlling subsidiaries is based on the actual needs of their daily operation. The guarantee is conducive to the daily operation of the wholly-owned and controlling subsidiaries and conforms to the overall interests and development strategy of the Company. The above insured parties are wholly-owned and holding subsidiaries within the scope of consolidated statements of the Company. The Company can effectively control the risks and decisions of their daily business activities and timely control their credit status. The Board of Directors agreed to the above security projections.

In order to effectively control the external guarantee risk of the Company, the holding subsidiaries Fenghua Electronics and Tongai Electronics issued a counter-guarantee commitment letter for the Company, promising that if the Company suffers losses due to the performance of the above guarantee obligations, it is willing to assume the counter-guarantee liability and provide full compensation.

5. The accumulative amount of external guarantees and the overdue amount of guarantees

Up to now, the cumulative total amount of external guarantees of the company is RMB 19.1626 million (excluding this guarantee), accounting for 1.75% of the audited net assets of the company in 2019. All the above guarantees are for the holding subsidiaries. The company has no overdue external guarantee.

Vi. File directory for reference

A copy of the business license of the guaranteed company and the financial statement of the first period of the latest year;



This is to announce.