Securities code: 600237 Securities abbreviation: Tongfeng Electronic Announcement Number: Lin 2022-012

Anhui Tongfeng Electronic Co., Ltd. on the wholly-owned and controlling subsidiary to provide a 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: wholly-owned subsidiary Anhui Tongfeng WTO Import and Export Co., LTD. And holding subsidiary Anhui Tongai Electronic Materials Co., LTD
l The amount of the guarantee and the balance of the guarantee actually provided for them: This time, it provides the guarantee for Anhui Tongfeng World Trade Import and Export Co., Ltd. to apply for the credit of 10 million yuan and Anhui Tongai Electronic Materials Co., Ltd. to apply for the credit of 10 million yuan. Up to now, the company has not provided guarantees for Anhui Tongfeng WTO Import and Export Co., LTD.; The guarantee balance provided by the company for Anhui Tongai Electronic Materials Co., Ltd. is RMB 6 million (excluding this guarantee).
l Whether there is a counter-guarantee in this guarantee: Anhui Tongai Electronic Materials Co., Ltd. will issue a counter-guarantee commitment letter for the company
l Total amount of external guarantee: RMB 29.26 million (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 or the Company") deliberated and approved the Proposal on the expected guarantee amount for wholly-owned and controlling subsidiaries in 2022. Agrees that the Company shall provide a comprehensive credit guarantee with a total limit of RMB 20,000 yuan for its wholly-owned and controlling subsidiaries to guarantee the working capital turnover business types of each subsidiary, and agrees to provide a guarantee limit of RMB 80 million yuan for its wholly-owned subsidiary Anhui Tongfeng WTO Import and Export Co., LTD. (hereinafter referred to as "Tongfeng WTO"); It agrees to provide a guarantee limit of not more than 50 million yuan for its holding subsidiary Anhui Tongai Electronic Materials Co., LTD. (hereinafter referred to as "Tongai Electronics"). The above authorization guarantee shall be valid for one year from the date of approval by the Board of Directors (please refer to the announcement disclosed by the Company on the website of Shanghai Stock Exchange and designated media on February 12, 2022 for details).
Recently, the company signed a Guarantee Contract with Tongling Branch of Bank of China Limited. The company will provide a maximum guarantee of RMB 10 million for Tongfeng WTO and Tongai Electronics to apply for loans in the bank respectively. The guarantee period is three years, and the guarantee method is joint and several liability guarantee.
Ii. Basic Information of the Guaranteed
1. Anhui Tongfeng World Trade Import and Export Co., LTD
Established on April 29, 2008, Tongfeng World Trade Center is a limited liability company (sole legal person invested or held by no natural person). Its domicile is No. 399, West Section of Cuihu Third Road, Tongling City, Anhui Province. With a registered capital of 10,000 million yuan, Tongfeng is a wholly-owned subsidiary of the company. The company is mainly engaged in self-operated and agent import and export trade of various kinds of commodities and technologies, electronics, chemical, machinery equipment, auto parts import, processing, compensation trade (except the import and export of commodities and technologies restricted or prohibited by the state, involving the license or special approval of the business with valid certificates).
As of September 30, 2021, the total assets of Tongfeng World Trade Group were RMB 54,044,400, total liabilities were RMB 37.529,800 and owners' equity was RMB 16,516,600. From January to September 2021, the company achieved operating revenue of 28,2,653,000 yuan and net profit of -9,047,900 yuan (data has not been audited). According to the audit report issued by Rongcheng Certified Public Accountants (Special General Partnership), as of December 31, 2020, the total assets of Tongfeng World Trade Center were 14,432,0900 yuan, and the total liabilities were 11,756,400 yuan. Owner's equity of 25.5645 million yuan, the company in 2020 to achieve operating revenue of 179.1509 million yuan, net profit of -2.6707 million yuan.
2. Anhui Tongai Electronic Materials Co., LTD
Tongai Electronics was established on December 7, 2004 as a limited liability company (Sino-foreign joint venture). The company's domicile is Tongfeng Industrial Park, Tongling Economic and Technological Development Zone, Anhui Province. Tongai Electronics is jointly invested by the Company and Korea SKC Co., LTD., with a registered capital of US $20.2 million, of which the Company holds 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 total assets of Tongai Electronics are 19,2,546,000 yuan, total liabilities are 13,705,300 yuan, and owners' equity is 17,8,847,700 yuan. From January to September 2021, the company achieved operating revenue of 10,293,700 yuan and net profit of 18,921,700 yuan (data unaudited). According to the audit report issued by Rongcheng Accounting Firm (Special General Partnership), as of December 31, 2020, the total assets of Tongai Electronics are 17,7760800 yuan, total liabilities are 17,841,800 yuan, and owners' equity is 159,919 million yuan. In 2020, the company achieved a revenue of 11,693,300 yuan and a net profit of 2,685,800 yuan.
The financial statements of Tongfeng Shimao and Tongai Electronics in 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 guarantee for the wholly-owned subsidiary Tongfeng WTO to apply for a loan of RMB 10 million in Tongling Branch of Bank of China Limited; Provide guarantee for controlling subsidiary Tongai Electronics to apply for a loan of 10 million yuan in Tongling Branch of Bank of China Limited. All the above guarantee methods are joint and several liability guarantee, and the guarantee period is three years. The specific business elements of this guarantee shall be subject to the relevant contract text signed with the bank.
Iv. Opinions of the Board of Directors
The board of directors believes that: the wholly-owned subsidiary Tongfeng WTO is currently mainly responsible for the import and export business of the company, acting as the agent for the import of raw materials, equipment and accessories required by the production of the company and the export business of products. The guarantee provided for Tongfeng WTO will mainly be used to meet the company's demand for funds in the relevant import and export business of the agency of the company, so as to guarantee the needs of the company's production and operation, which is conducive to the stable operation of the company's production and operation. Copper Peak World Trade for the company's wholly-owned subsidiary, the relevant security risks can be controlled.
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 RMB 29.26 million (excluding this guarantee), accounting for 2.65% 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 electronic business license of Tongfeng Shimao and Tongai;
2. Annual financial statements of Tongfeng Shimao and Tongai Electronics.
This is to announce.