Zhejiang Shuanghuan Transmission Machinery Co., Ltd. Progress Announcement on the Company's Guarantee for Its Wholly-Owned Subsidiary

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Stock code: 002472 Stock abbreviation: Shuanghuan Transmission Announcement No.: 2026-003

Zhejiang Shuanghuan Transmission Machinery Co., Ltd.

Announcement on the Progress of the Company’s Provision of Guarantees for Its Wholly Owned Subsidiary

Our company and all members of the board of directors guarantee that the information disclosed is true, accurate, and complete, and there are no false records, misleading statements, or material omissions.

I. Overview of the Guarantee

Zhejiang Shuanghuan Transmission Machinery Co., Ltd. (hereinafter referred to as the “Company”) at the 3rd meeting of the 7th session of the board of directors held on April 23, 2025, and the 2024 annual general meeting of shareholders held on May 16, 2025, deliberated and approved the “Resolution on the Company and Its Subsidiaries Providing Financing Guarantees for 2025.” According to the overall production and operation plan and the circumstances of capital needs, certain companies within the scope of the consolidated financial statements plan to seek financing from financial institutions and finance leasing companies. To ensure the continuous and healthy development of production and operations, the Company plans to provide financing guarantees with an aggregate limit of no more than RMB 4.310 billion for some wholly owned subsidiaries and controlling subsidiaries; and provide financing guarantees with an aggregate limit of no more than RMB 140 million for mutual financing between some controlling subsidiaries and their wholly owned subsidiaries under them. The actual guarantee amount shall be subject to the final guarantee contracts ultimately signed. The validity period of the aforementioned guarantee limits is from the date the 2024 annual general meeting of shareholders approves the resolutions until the date the 2025 annual general meeting of shareholders is held.

For the specific details of the above guarantee matters, please refer to the relevant announcements disclosed by the Company on April 25, 2025 and May 17, 2025 in China Securities Journal, Shanghai Securities News, Securities Times, Securities Daily, and the website of Juchao Information Network (www.cninfo.com.cn).

II. Progress of the Guarantee

Recently, the Company entered into the “Maximum Amount Guarantee Contract” with the Tongxiang Sub-branch of Bank of China Co., Ltd., under which it provides joint and several liability guarantee for the financing business conducted by its wholly owned subsidiary, Shuanghuan Transmission (Jiaxing) Precision Manufacturing Co., Ltd. (hereinafter referred to as “Jiaxing Shuanghuan”), with the Tongxiang Sub-branch of Bank of China Co., Ltd. The maximum principal balance of the guaranteed creditor’s claim is RMB 30,000.00万元.

The above guarantee matters are within the guarantee limits approved by the Company’s board of directors and the general meeting of shareholders, and therefore do not require submitting again to the Company’s board of directors or the general meeting of shareholders for deliberation.

III. Main Contents of the Guarantee Agreement

1. Creditor: Tongxiang Sub-branch of Bank of China Co., Ltd.

2. Guarantor: Zhejiang Shuanghuan Transmission Machinery Co., Ltd.

3. Debtor: Shuanghuan Transmission (Jiaxing) Precision Manufacturing Co., Ltd.

4. Guarantee method: joint and several liability guarantee

5. Principal contract: contracts for loans, trade financing, letters of guarantee, funds business and other credit facility businesses signed between the creditor and the debtor from March 29, 2026 to March 29, 2027, and any amendments or supplements thereto, in which it is agreed that they belong to the principal contract under this contract.

6. Maximum principal balance of the guaranteed creditor’s claim: RMB 30,000.00万元

7. Scope of guarantee: within the period during which the principal creditor’s claim determined under this contract occurs, if it is determined to be the guaranteed principal creditor’s claim under this contract, then the interest arising from the principal of such principal creditor’s claim (including interest, compound interest, and default interest), liquidated damages, damages for breach, expenses for realizing the creditor’s rights (including but not limited to litigation costs, lawyer fees, notarization fees, and execution costs, etc.), losses caused to the creditor due to the debtor’s breach, and all other payable expenses, etc., shall also constitute the guaranteed creditor’s claim; its specific amount will be determined upon its settlement.

8. Guarantee period: The guarantee period for the debts guaranteed under this contract shall be calculated separately for each debt. The guarantee period for each debt is three years from the date of expiration of the performance term of that specific debt.

During such guarantee period, the creditor shall have the right to require the guarantor to bear guarantee liability for all or part of the principal creditor’s claims involved, including multiple-claim or single-claim situations, either together or separately.

IV. Cumulative External Guarantees and Number of Overdue Guarantees

As of the date of disclosure of this announcement, the total outstanding balance of guarantees provided by the Company and its controlling subsidiaries is RMB 185,119.00万元, all of which are guarantees between companies within the scope of the Company’s consolidated financial statements, representing 21.00% of the Company’s audited net assets in the most recent period (as of December 31, 2024).

The Company and its controlling subsidiaries have no situation in which guarantees are provided to entities outside the consolidated financial statements, and there are no cases of overdue guarantees, guarantees involving litigation, or guarantee amounts that should be borne due to败诉 judgments.

This announcement is hereby issued.

Board of Directors of Zhejiang Shuanghuan Transmission Machinery Co., Ltd.

March 31, 2026

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