Shengshi Technology Co., Ltd. Progress Announcement on the Provision of Guarantees for Wholly Owned Subsidiaries

Stock code: 002990 Securities abbreviation: Shengshi Technology Announcement number: 2021-077

The Company and all members of the Board of Directors warrant that the information disclosed is true, accurate and complete and that there are no misrepresentations, misleading statements or material omissions.

1. Overview of the guarantee situation

Recently, Shengshi Technology Co., Ltd. (hereinafter referred to as the "Company") and Bank of Ningbo Co., Ltd. Shenzhen Branch (hereinafter referred to as "Bank of Ningbo Shenzhen Branch") signed the "Maximum Guarantee Contract" in Shenzhen, and the Company provided a joint and several liability guarantee guarantee with a maximum debt limit of RMB50 million for the claims arising from the credit business contract signed between Shenzhen Shengshi Technology Co., Ltd. (hereinafter referred to as "Shenzhen Shengshi"),Shenzhen Branch, a wholly-owned subsidiary of Shenzhen Shengshi Technology Co., Ltd. (hereinafter referred to as "Shenzhen Shengshi") and Bank of Ningbo Shenzhen Branch.

The Company held the 25th meeting of the second session of the Board of Directors on September 17, 2021, and passed the "Proposal on Providing Guarantees for Wholly-Owned Subsidiaries" with 7 votes in favor, 0 votes against and 0 abstentions, in order to meet the business development needs of Shenzhen Shengshi, agreed to provide a guarantee of not more than RMB150 million for shenzhen Shengshi's financing business (for non-working capital loans, working capital loans, bank acceptance drafts, letters of credit, commercial acceptance bill discounting, foreign exchange, foreign exchange, etc.).

The guarantee matters are within the scope of the above deliberations and do not need to be submitted to the board of directors and the general meeting of shareholders of the company for consideration. This guarantee does not constitute a related party transaction.

After the occurrence of this guarantee event, the balance of the company's guarantee for Shenzhen Shengshi is 0.5 billion yuan, and the available guarantee amount is 100 million yuan.

2. The basic situation of the guarantor

(1) Basic information

1. Company Name: Shenzhen Shengshi Technology Co., Ltd

2. Date of Establishment: October 12, 2015

3. Registration location: Room 201, Building A, No. 1 Qianwan 1st Road, Qianhai Shenzhen-Hong Kong Cooperation Zone, Shenzhen (settled in Shenzhen Qianhai Commercial Secretary Co., Ltd.)

4. Legal representative: Hu Gang

5. Registered capital: RMB 65 million

6. Business scope: general business items: computer software, mechatronics products, industrial automation equipment, office automation equipment, building intelligent control equipment, communication and information equipment, electronic products, security products, computer networks and databases technology development and sales; weak current intelligent system, intelligent control system, communication network system, information security system, security system design, technical advice, installation and maintenance services; computer information system integration; business import and export business. Licensed business projects: construction and installation works.

7. Shareholding structure and relationship with the company: the company holds 100% of its equity, and Shenzhen Sheng is regarded as a wholly-owned subsidiary of the company.

(2) The financial situation of the guarantor

Unit: Meta

(3) The creditworthiness of the guarantor

Shenzhen Shengshi is not a judgment defaulter.

3. The main content of the guarantee contract

Creditor: Bank of Ningbo Co., Ltd. Shenzhen Branch

Guarantor: Shengshi Technology Co., Ltd

1. The debtor is Shenzhen Shengshi Technology Co., Ltd.

2. The period of occurrence is from September 10, 2021 to September 10, 2022.

3. The maximum limit of creditor's rights is the equivalent of RMB (capitalized) wu 10 million yuan. The maximum claim limit is the maximum outstanding balance of claims approved by the creditor to the debtor and allowed to be used in accordance with this contract and the corresponding main contract.

4. Types and methods of guaranteed main claims: The guarantor voluntarily provides joint and several liability guarantee guarantees for all claims actually formed by the creditor for the debtor to handle the agreed business within the agreed business period, and does not exceed the maximum claim limit. Among them, if the specific business currency is inconsistent with the above currency, the guarantor agrees to convert it according to the exchange rate price determined by the creditor on the day of the occurrence of the business. The above types of business include, but are not limited to: RMB/foreign currency loans, bank/commercial acceptance bill discounting, bank acceptance bill acceptance, commercial acceptance bill of exchange guarantee, bank guarantee (guarantee), standby letter of credit, account overdraft, export package lending, import issuance, delivery guarantee, import payment, import bill, export bill (including export commercial invoice financing), forfaiting, factoring, invoice discounting, loan commitment, loan loan and repurchase, entrusted loan, entrusted debt investment, non-standardized channel financing business, Credit card credit granting business (including credit card consumption, cash withdrawal, credit card consumption installment, credit card cash installment, etc.), financial derivatives transactions and other local and foreign currency balance sheet credit granting business (including contingent debt business).

5. Scope of guarantee guarantee: The scope of this contract guarantee includes the principal and interest of the main claim under the main contract, overdue interest, compound interest, penalty interest, liquidated damages, damages and litigation costs, preservation fees, enforcement fees, lawyer fees, travel expenses and other costs for realizing the claim, double interest during the period of delay in performance of effective legal documents and all other expenses payable.

6. Guarantee period: The guarantee period of the guarantor is two years from the date of expiration of the debtor's debt performance period as stipulated in the main contract. If the main contract stipulates that the debts are due in installments, the guarantee period shall be two years from the date of expiration of the performance period of each debt.

4. Opinions of the Board of Directors

The guarantee provided by the Company for its wholly-owned subsidiary, Shenzhen Shengshi, is based on the business development needs of Shenzhen Shengshi. Shenzhen Sheng is regarded as a wholly-owned subsidiary within the scope of the company's consolidated financial statements, the company has a full understanding and control of its daily management and business development, the risk is controllable, and the company's guarantee will not harm the interests of the company.

5. The cumulative number of external guarantees and the number of overdue guarantees

As of the disclosure date of this announcement, the total amount of external guarantees of the Company and its subsidiaries is RMB330 million, accounting for 17.49% of the Company's latest audited net assets, and the total amount of external guarantees actually signed and performed by the Company is RMB230 million, accounting for 12.19% of the Company's latest audited net assets, all of which are guarantees for wholly-owned subsidiaries within the scope of the consolidated financial statements. The Company and its subsidiaries have not provided guarantees to units outside the scope of the consolidated financial statements, and there is no guarantee balance corresponding to overdue debts, the amount of guarantee involved in litigation, and the amount of guarantee that should be borne due to the judgment of losing the lawsuit.

6. Documents for reference

Maximum Guarantee Contract

This is hereby announced.

Shengshi Technology Co., Ltd

board of directors

October 28, 2021