Securities code: 600237 Securities abbreviation: Tongfeng Electronic Announcement Number: Lin 2022-010

Anhui Tongfeng Electronic Co., Ltd. on the holding subsidiary - Anhui Tongai Electronic Materials Co., Ltd. to provide guarantee progress 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:

Name of Guarantor: Holding subsidiary -- Anhui Tongai Electronic Materials Co., LTD
l The amount of the guarantee and the balance of the guarantee actually provided for it: The maximum amount of the guarantee provided for Anhui Tongai Electronic Material Co., Ltd. for the credit application is RMB 6 million. Up to now, the company does not provide guarantees for Anhui Tongai Electronic Materials Co., LTD.
l Whether there is a counterguarantee in this guarantee: Yes
l Total amount of external guarantee: 2,638 (excluding this guarantee)
l Accumulative amount of overdue external guarantee: none

I. Overview of the guarantee situation

On February 11, 2022, the ninth meeting of the ninth Board of Directors of Anhui Tongfeng Electronics Co., LTD. (hereinafter referred to as the "Company") deliberated and passed the Proposal on the expected guarantee amount for wholly-owned and controlling subsidiaries in 2022, agreeing that the Company would provide comprehensive credit guarantee for wholly-owned and controlling subsidiaries with a total limit of RMB 20,000 yuan. The company agrees to provide a guarantee limit of not more than 50 million yuan for the holding subsidiary Anhui Tongai Electronic Material Co., LTD. (hereinafter referred to as "Tongai Electronic"). The authorized guarantee shall be valid for one year from the date of approval by the Board of Directors (as detailed in the Company's announcement on the website of Shanghai Stock Exchange and the Company's designated media on February 12, 2022).
Recently, the company and Huishang Bank Tongling Beijing Road branch signed the "guarantee contract", the company will provide the maximum limit for the loan Tongai electronic application for 6 million yuan guarantee, guarantee period of three years, the guarantee way for the joint liability guarantee.

Ii. Basic Information of the Guaranteed

Anhui Tongai Electronic Materials Co., Ltd. was established on December 7, 2004. The company type is limited liability company (Sino-foreign joint venture). The company residence is Tongfeng Industrial Park, Tongling Economic and Technological Development Zone, Anhui Province. Tongai Electronics is a joint venture between the company and Korea SKC Corporation. The registered capital of the company is $20.2 million, of which the company has a 75% interest in Tongai Electronics. The company is mainly engaged in the production and sales of capacitors for BOPET film and other electronic materials.
As of September 30, 2021, the company's total assets are 19,2,546,000 yuan, total liabilities are 13,705,300 yuan, owners' equity is 17,884,700 yuan, the operating income from January to September 2021 is 10,2,939,700 yuan, the net profit is 18,921,700 yuan (the above data is unaudited). As of December 31, 2020, the audited total assets of Tongai Electronics are 17,7760800 yuan, total liabilities are 17,841,800 yuan, and owners' equity is 159,9190 yuan. In 2020, the operating income is 11,693,300 yuan, and the net profit is 23,685,800 yuan. The financial statements of Tongai Electronics for the first period of the previous year are detailed in the Company's announcement on the website of Shanghai Stock Exchange on February 15, 2022.

Iii. Main contents of the guarantee Agreement

The company will provide the maximum limit of RMB 6 million guarantee for the loan applied by the holding subsidiary Tongai Electronics in Huishang Bank Tongling Beijing Road Branch. The guarantee method is joint and several liability guarantee, and the guarantee period is three years. The specific business elements of this guarantee are subject to the relevant contract text signed with the bank.

Iv. Opinions of the Board of Directors

The Board of directors believes that the loan funds of Tongaielectronic will be used for the production and operation of the company and supplementary working capital. The use of funds is reasonable. Tongaielectronic has good solvency and low guarantee risk.
Korea SKC Corp., a foreign shareholder of Tongai Electronics, could not provide a guarantee in proportion to its equity because of its small shareholding and lack of collateral conditions. In order to effectively control the external guarantee risk, 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 bear the counter-guarantee liability and provide full compensation for the company. This guarantee for Tongai Electronics is in line with the company's business development strategy, and the relevant risks can be controlled.

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

Up to now, the cumulative total amount of the company's external guarantees is 26.38 million yuan (excluding this guarantee), accounting for 2.40% of the company's audited net assets attributable to the parent company in 2020. All the above guarantees are for the holding subsidiaries. The company has no overdue external guarantee.

Vi. File directory for reference

1. Copy of business license of Tongai Electronics;
2. Annual financial statements of Tongai Electronics.
This is to announce.