Securities code: 600237 Securities for short: Tongfeng Electronic Announcement Number: Lin 2022-022
Anhui Tongfeng Electronics Co., LTD
Progress announcement regarding the provision of guarantees for wholly-owned and majority-owned subsidiaries

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 World Trade Import and Export Co., LTD. And holding subsidiary Tongling Fenghua Electronics Co., LTD
l The amount of the guarantee and the balance of the guarantee actually provided: This time, the guarantee is provided for Anhui Tongfeng World Trade Import and Export Co., Ltd. applying for credit of RMB 5 million and Tongling Fenghua Electronics Co., LTD. Applying for credit of RMB 5 million. Up to now, the guarantee balance provided by the company for Anhui Tongfeng World Trade Import and Export Co., Ltd. is 12.55 million yuan; The balance of the guarantee provided for Tongling Fenghua Electronics Co., Ltd. is 18 million yuan.
l Whether there is a counter-guarantee in this guarantee: Tongling Fenghua Electronic Co., Ltd. will issue a counter-guarantee commitment letter for the company
l Total amount of external guarantee: RMB 52.05 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 the wholly-owned and controlling subsidiaries to guarantee the revolving business types of the working capital of each subsidiary, and agrees to provide a guarantee limit of RMB 80 million yuan for the 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 controlling subsidiary, Tongling Fenghua Electronics Co., LTD. (hereinafter referred to as "Fenghua Company"). The above authorization guarantee shall be valid within one year from the date of approval by the Board of Directors (see the Company's announcement on the Shanghai Stock Exchange website and the Company's media on February 12, 2022 for details).
Recently, the company signed a "Guarantee Contract" with Tongling Branch of Postal Savings Bank of China Co., LTD., in which the company will provide a maximum guarantee of RMB 5 million for Tongfeng World Trade Organization and Fenghua Company 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 the import and export trade business of all kinds of commodities and technologies, including import, processing and compensation trade of electronics, chemicals, machinery and equipment, auto parts (except the import and export commodities and technologies restricted or prohibited by the state, involving the license or special item approval with valid certificates).
As of March 31, 2022, the total assets of Tongfeng WTO were 229,748,400 yuan, the total liabilities were 158,171,600 yuan and the owners' equity was 71,576,800 yuan. From January to March 2022, the company achieved operating revenue of 11,6274,600 yuan and net profit of -312,100 yuan (data unaudited). According to the audit report issued by Rongcheng Certified Public Accountants (Special General Partnership), as of December 31, 2021, the total assets were 217,760,200 yuan, the total liabilities were 20,587,130 yuan, and the owners' equity was 11,888,900 yuan. The company will achieve revenue of 228,493,400 yuan and net profit of -13,675,600 yuan in 2021.
2. Tongling Fenghua Electronics Co., LTD
Fenghua Company, established on December 16, 2002, is another limited liability company, and its domiciling is Tongfeng Industrial Park, Tongling Economic and Technological Development Zone, Anhui Province. The registered capital of Fenghua Company is 50 million yuan, and it is a holding subsidiary of the company. The company is mainly engaged in the development, production and sales of quartz crystal frequency devices, the 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 whose import and export are restricted or prohibited by the state).
As of March 31, 2022, the total assets of Fenghua Company were 9,383,900 yuan, total liabilities were 63,973,300 yuan and owners' equity was 19,858,600 yuan. From January to March 2022, the company achieved a revenue of 6.201,500 yuan and a net profit of -986,100 yuan (data unaudited). According to the audit report issued by Rongcheng Certified Public Accountants (Special General Partnership), as of December 31, 2021, the total assets of 144,074,600 yuan, total liabilities of 11,322,800 yuan, owners' equity of 30,844,700 yuan. In 2021, the company will achieve operating revenue of 5,389,900 yuan and net profit of 2,994,900 yuan.

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 5 million in Tongling Branch of Postal Savings Bank of China Limited; Provide guarantee for the holding subsidiary Fenghua Company to apply for a loan of 5 million yuan in Tongling Branch of Postal Savings 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 the holding subsidiary Fenghua Company will be used for the production and operation of the company and supplementary working capital. The use of funds is reasonable. Fenghua Company has good solvency and low guarantee risk. The company's equity ratio in Fenghua Company is 98.76% and it has absolute control over Fenghua Company. The other shareholder of Fenghua Company has a smaller shareholding ratio and does not have the conditions to provide guarantee, so it cannot provide guarantee in proportion to its equity ratio. In order to effectively control the external guarantee risk, Fenghua Company 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 Fenghua Company is in line with the company's business development strategy, and 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 external guarantees of the company is RMB 52.05 million (excluding this guarantee), accounting for 4.53% of the audited net assets of the company attributable to the parent company in 2021. All the above guarantees are for the holding subsidiaries. The company has no overdue external guarantee.

Vi. File directory for reference

1. Copies of business licenses of Tongfeng Shimao and Fenghua Company;
2. Annual financial statements of Tongfeng Shimao and Fenghua Company.
This is to announce.