Announcement of the Company’s Endorsement Guarantee Excess Limit Improvement Plan for the second quarter of 2025
1.Date of occurrence of the event:2025/08/07
2.Company name:Les enphants Co.,Ltd.
3.Relationship to the Company (please enter ”head office” or
”subsidiaries”):head office
4.Reciprocal shareholding ratios:NA
5.Cause of occurrence:
(1)Follow the letter No.1140335885 of the Financial Supervisory Commission.
(2)Due to the recognition of gains and losses from investment companies,
the company’s net worth has declined. As of the end of February 2025,
the outstanding endorsed guarantee balance has exceeded the limit
set by the company.
6.Countermeasures:
Due to the recognition of gains and losses from investment companies,
the company’s net worth has declined, leading to the endorsement guarantees
to Shanghai Les Enfants Children Articles Co., Ltd. and Suzhou Les Enfants
Children Articles Co., Ltd. exceeding the limit. After implementing the
improvement plan in the second quarter, by the end of June 2025, the company
has resolved the issue of exceeding the endorsement guarantee limit.
The improvement plan implemented in the second quarter is as follows:
The company held a board meeting on March 6, 2025, to approve amendments to
certain provisions of the company's ”Endorsement and Guarantee Operating
Procedures.” The amendments were subsequently approved at the shareholders'
meeting held on June 27, 2025. The endorsement and guarantee limit was
increased from 50% of the net worth based on the most recent financial
report to 100% of the net worth based on the most recent financial report.
7.Any other matters that need to be specified (the information disclosure
also meets the requirements of Article 7, subparagraph 9 of the Securities
and Exchange Act Enforcement Rules, which brings forth a significant impact
on shareholders rights or the price of the securities on public companies.):
After amending the Endorsement and Guarantee Operating Procedures and
increasing the endorsement guarantee limit, the company has resolved the
issue of exceeding the limit.