Shenzhen New Star Light Alloy Materials Co., Ltd. Announcement on the Progress of External Guarantees

Securities Code: 603978 Stock Abbreviation: Shenzhen New Star Announcement No.: 2026-009

Shenzhen New Star Light Alloy Materials Co., Ltd.

Announcement on Progress of External Guarantees

The Company’s board of directors and all directors guarantee that the content of this announcement does not contain any false statements, misleading representations, or material omissions, and they assume legal responsibility for the authenticity, accuracy, and completeness of the content.

Key Matters to Note:

● Guarantee target and basic information

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● Cumulative guarantee situation (already occurred)

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I. Overview of Guarantee Situation

(1) Basic information on the guarantee

1. Recently, the company entered into a “Guarantee Contract” with Zhejiang Zheyin Financial Leasing Co., Ltd., providing a joint-liability guarantee for Songyan New Energy to carry out its financial leasing business with Zhejiang Zheyin Financial Leasing Co., Ltd., with a guarantee amount of RMB 30,000,000.00. The company’s controlling shareholder and actual controller, Mr. Chen Xueming, provides a joint-liability guarantee for the above-mentioned financial leasing business. Mr. Chen Xueming has not received any premiums, and the company and its subsidiaries have not provided any counter-guarantee to him.

2. The company’s wholly owned subsidiary, Songyan New Energy, entered into a “Maximum Amount Guarantee Contract” with Huishang Bank Co., Ltd., Shenzhen Branch (hereinafter referred to as “Huishang Bank Shenzhen Branch”), to provide a joint-liability guarantee for the company’s application for financing with Huishang Bank Shenzhen Branch, with the maximum guaranteed creditor’s claim amount of RMB 74,100,000.00. The company’s controlling shareholder and actual controller, Mr. Chen Xueming, provides joint-liability guarantee for the company’s financing business mentioned above. Mr. Chen Xueming has not received any premiums, and the company and its subsidiaries have not provided any counter-guarantee to him.

(2) Internal decision-making procedures

The company held the 25th meeting of the fifth session of the board of directors on April 24, 2025 and the 2024 annual general meeting on May 15, 2025, respectively, and considered and approved the “Proposal on the Estimated Application for Comprehensive Credit Line Quota for 2025 and External Guarantee Quota”. It agreed that in 2025, the company will provide joint-liability guarantees for its subsidiaries Xin Xing Light Alloy Materials (Luoyang) Co., Ltd. (hereinafter referred to as “Luoyang New Star”) to apply for a comprehensive credit line of RMB 1.80 billion with banks and financial leasing companies and other institutions, provide a joint-liability guarantee for its subsidiary Songyan New Energy to apply for a comprehensive credit line of RMB 350 million with banks and financial leasing companies and other institutions, and provide a joint-liability guarantee for its subsidiary Ganzhou Songhui Fluorine New Materials Co., Ltd. (hereinafter referred to as “Ganzhou Songhui”) to apply for a comprehensive credit line of RMB 350 million with banks and financial leasing companies and other institutions; and the subsidiary Songyan New Energy is expected to provide a joint-liability guarantee of RMB 800 million for the company’s application for comprehensive credit line. The validity period of the above-mentioned guarantee quotas runs from the date on which the 2024 annual general meeting approves the matter to the date on which the 2025 annual general meeting is held, and the guarantee quotas may be reused within the validity period. For details, please refer to the company’s announcement dated April 25, 2025 on the website of the Shanghai Stock Exchange (

II. Basic information of the guaranteed parties

(1) Songyan New Energy Materials (Quannan) Co., Ltd.

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(2) Shenzhen New Star Light Alloy Materials Co., Ltd.

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(3) Information on whether the guaranteed parties are dishonest persons subject to enforcement

Songyan New Energy Materials (Quannan) Co., Ltd. and Shenzhen New Star Light Alloy Materials Co., Ltd. are not dishonesty persons subject to enforcement.

III. Main contents of the guarantee agreements

(1) Guarantee contract signed by the company with Zhejiang Zheyin Financial Leasing Co., Ltd.

1. Creditor (Party A): Zhejiang Zheyin Financial Leasing Co., Ltd.

2. Guarantor (Party B): Shenzhen New Star Light Alloy Materials Co., Ltd., and Chen Xueming

3. Debtor (Lessee): Songyan New Energy Materials (Quannan) Co., Ltd.

4. Guarantee amount: RMB 30,000,000.00

5. Guarantee form: irrevocable joint-liability guarantee; Party B shall assume joint-guarantee liability for all debts of the lessee under the main contract. If the lessee fails to perform or fails to fully perform the debts by the due date(s) stipulated in the main contract, Party A shall have the right to directly require Party B to assume guarantee liability.

6. Scope of guarantee: (1) all rent, liquidated damages, compensation for damages, and all kinds of expenses paid by Party A for realizing the main creditor’s rights and the guarantee rights, as well as all other payables that the lessee should pay to Party A under the main contract. If there are changes in the interest rate stipulated under the main contract, the scope shall also include the amounts adjusted accordingly due to such changes.

(2) If Party A, pursuant to applicable laws or the conditions agreed in the main contract, terminates the main contract or repossesses the leased property, then the scope of Party B’s guarantee shall be the total losses that the lessee shall compensate Party A for, specifically including: the sum of all unpaid rent under the main contract, liquidated damages, and all kinds of expenses paid by Party A for realizing the main creditor’s rights and guarantee rights, as well as other losses caused by the lessee to Party A.

Specially agreed by both parties: where Party A has actually repossessed the leased property and disposed of the leased property in accordance with the provisions of the main contract or through judicial authorities, and has actually received the proceeds from the disposal of the leased property, the scope of Party B’s guarantee shall be deducted by the proceeds actually received by Party A from the disposal of the leased property; however, before Party A actually receives the proceeds from the disposal of the leased property, the scope of Party B’s guarantee shall still be the scope stipulated in the preceding paragraph of this clause.

(3) If the main contract is determined to be a contract with another nature under other laws, the scope of the guarantee shall be all amounts payable by the lessee under such contract(s) of that legal nature (including but not limited to principal, interest, penalty interest, etc.), liquidated damages, compensation for damages, all kinds of expenses paid by Party A for realizing the main creditor’s rights and guarantee rights, and all other payables that all other debtors should pay.

Under this contract, the expenses paid by Party A for realizing the main creditor’s rights and guarantee rights include but are not limited to litigation fees, arbitration fees, fees for applying for property preservation, property preservation guarantee fees, property preservation insurance fees, lawyer fees, investigation fees, travel expenses, notarization fees, appraisal fees, identification fees, auction fees, and all taxes and fees incurred when handling the leased property, additional taxes to be paid, transportation fees, storage fees, custody fees, insurance premiums, maintenance fees, and so on.

7. Guarantee period: (1) three years from the date of expiration of the final debt performance period under all the main contracts; if the debts under all or part of the main contract(s) are agreed to be performed in installments, then the guarantee period shall be three years from the date of expiration of the performance period of the last installment. If, pursuant to the main contract, Party A declares the debts to become due ahead of schedule, the date when the debts become due early shall be the date of expiration of the debt performance period. (2) If Party A and the lessee agree to extend the performance period of the principal debt, the guarantee period shall still be the period stipulated in item (1) above unless Party B provides written consent.

(2) Guarantee contract signed by Songyan New Energy and Huishang Bank Shenzhen Branch

1. Guarantor (Party A): Songyan New Energy Materials (Quannan) Co., Ltd., and Chen Xueming

2. Creditor (Party B): Huishang Bank Co., Ltd., Shenzhen Branch

3. Debtor: Shenzhen New Star Light Alloy Materials Co., Ltd.

4. Guarantee amount: maximum creditor’s claim amount of RMB 74,100,000.00

5. Guarantee form: joint-liability guarantee

6. Scope of guarantee: the principal of the creditor’s claim under the main contract up to an amount not exceeding RMB 57,000,000 (in words: RMB Fifty-seven million only) and interest thereon (including penalty interest, compound interest, and double the interest on delayed performance during the period determined by effective legal documents), liquidated damages, compensation for damages, other amounts payable by the debtor to Party B, and the expenses incurred by Party B in order to realize the creditor’s rights and the guarantee rights (including but not limited to litigation fees, arbitration fees, property preservation fees, travel expenses, execution fees, appraisal fees, auction fees, service fees, announcement fees, lawyer fees, notarization fees, etc.).

Any loan(s), advance payment(s), interest, fees, or any other creditor’s claim(s) formed or arising during a period beyond the period during which the main contract was signed shall still fall within the scope of guarantee under this contract. The expiration date of the debt performance period under the main contract shall not be restricted by the expiration date of the period during which the main contract was signed.

7. Guarantee period: (1) the guarantee period under the contract is calculated separately for each single credit business based on what Party B processes for the debtor, namely three years from the expiration date of the debt performance period for that single credit business. (2) If Party B and the debtor reach an extension agreement regarding the debt performance period under the main contract, the guarantee period shall extend to three years from the expiration date of the debt performance period newly agreed in the extension agreement. (3) If, pursuant to matters stipulated in laws and regulations or as agreed in the main contract, Party B announces the debts to become due ahead of schedule, the guarantee period shall extend to three years from the date when the debts become due early. (4) During the guarantee period, Party B shall have the right to require Party A, as regards all or part of the main creditor’s rights, whether for multiple transactions or a single transaction, to assume joint guarantee liability, collectively or separately.

IV. Necessity and reasonableness of the guarantee

This guarantee is to meet the needs of the company and its controlling subsidiaries for business development. It is beneficial to the stable operation and long-term development of the company and Songyan New Energy, and complies with the company’s strategic development plan. Songyan New Energy is a wholly owned subsidiary of the company, and the company has control over it in terms of financial affairs and operation and management. Songyan New Energy’s production and operations are currently stable, and there is no significant risk of debt repayment such as overdue debts. The risk of this guarantee is controllable and will not harm the interests of the company and its shareholders.

V. Board’s opinion

On April 24, 2025, the company held the 25th meeting of the fifth session of its board of directors and considered and approved the “Proposal on the Estimated Application for Bank Credit Line Quota for 2025 and External Guarantee Quota”. The board believes that this guarantee is intended to meet the production and operation needs of the company and its subsidiaries, and it is in line with the company’s overall interests and development strategy. Luoyang New Star, Songyan New Energy, and Ganzhou Songhui are wholly owned subsidiaries of the company; the company effectively controls their production and operation, and the risk of this guarantee is controllable. This guarantee is in compliance with the relevant provisions of the China Securities Regulatory Commission’s “Guidelines for the Supervision of Listed Companies No. 8 — Regulatory Requirements for Listed Companies’ Capital Interactions and External Guarantees”, the “Articles of Association”, and the “Administrative System for External Guarantees of the Company”, and will not harm the interests of the company and its shareholders. The board agrees to the above guarantee matters.

VI. Number of external guarantees and number of overdue guarantees

As of the date of disclosure of this announcement, the balance of external guarantees of the company and its controlling subsidiaries is RMB 1,149.27 million (including this guarantee), accounting for 66.41% of the company’s net assets audited for 2024; the balance of the company’s guarantees to its controlling subsidiaries is RMB 1,120.78 million (including this guarantee), accounting for 64.77% of the company’s net assets audited for 2024.

The company and its controlling subsidiaries have no overdue guarantees, and also have no guarantees provided to the controlling shareholder, the actual controller, or their related parties.

This announcement is hereby made.

Board of Directors of Shenzhen New Star Light Alloy Materials Co., Ltd.

March 26, 2026

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