Zhitong Finance App News, Nanfang Manganese Industry (01091) issued an announcement. The board of directors of the company hereby updates that the outstanding principal amount of the project financing loan was RMB 552 million, which was originally due on December 22, 2022. The outstanding principal amount of RMB 144 million was then extended to expire on May 20, 2024, while the outstanding principal amount of RMB 409 million was then extended until July 20, 2024. Southern Manganese Group Co., Ltd. (Southern Manganese Group, formerly CITIC Dameng Mining Co., Ltd.) (a wholly-owned subsidiary of the company) provided a corporate guarantee to China CITIC Bank for the financing loan for the project, equivalent to RMB 264 million, along with accrued interest, costs and expenses. The enterprise guarantee has been recognized as a contingent liability of the company. On the maturity date of May 20, 2024, the borrower Dushan Jinmeng failed to repay the principal amount of RMB 144 million. The total outstanding principal amount was RMB552 million and accrued interest was RMB60.2651 million. On May 20, 2024, China CITIC Bank implemented the corporate guarantee, and Nanmeng Group is responsible for the guarantee. On May 20, 2024, Southern Manganese Group fulfilled its obligation to repay the principal amount of RMB 264 million and interest of RMB 28.8016 million to China CITIC Bank. China CITIC Bank's execution of the enterprise guarantee and the Southern Manganese Group's liquidation enterprise guarantee will be recognized as the company's loss.

According to relevant Chinese law, Nanmeng Group has the right to recover compensation from Dushan Jinmeng after assuming the guarantee liability as a guarantor. The company has also obtained legal collateral for the leased land, property, plant and equipment in Dushan Jinmeng to minimize losses.