Jiaxin Silk (002404): Holding Subsidiary Provides Guarantee For Its Wholly-Owned Subsidiary

Jiaxin silk (002404. SZ) announced that Jiaxing Youjia metal products Co., Ltd. (hereinafter referred to as "Youjia metal") plans to provide a comprehensive bank credit guarantee of no more than 20 million yuan for its wholly-owned subsidiary Jiaxing Tianxin Hardware Products Co., Ltd. (hereinafter referred to as "Tianxin hardware"). The guarantee limit is valid for three years from the date of deliberation and approval by the shareholders' meeting of Youjia metal. The above amount can be recycled. At any time point within the validity period of guarantee amount, the balance of guarantee provided by Youjia metal for Tianxin Hardware shall not exceed 20 million yuan. The specific guarantee period is two years from the expiration date of the debt performance period stipulated in the specific loan contract of Tianxin hardware. Tianxin hardware provides counter guarantee for the guarantee. The above guarantee matters have been deliberated and approved by Youjia metal's shareholders' meeting on April 19, 2021. The resolution on Tianxin hardware guarantee matters approved by Youjia metal's shareholders' meeting in the early stage shall automatically become invalid after being deliberated and passed by this shareholders' meeting. According to the relevant provisions of the guidelines for the standardized operation of Listed Companies in Shenzhen Stock Exchange (revised in 2020), the internal decision-making procedures of Youjia metal, the holding subsidiary of the company, have been carried out, and it is not necessary to submit the matter to the board of directors and the general meeting of shareholders for deliberation.