Hyosung Advanced Materials : Decision on Provision of Debt Guarantee for Others

Decision on Provision of Debt Guarantee for Others

1. Debtor	Hyosung Quang Nam Co., Ltd.
- Relationship to company	Affiliated company
2. Creditor	Lender group with Korea Development Bank Singapore branch as agent
3. Amount of debt (borrowing) (KRW)	137,419,300,000
4. Details of debt guarantee	Amount of debt guaranteed (KRW)	137,419,300,000
Equity capital (KRW)	721,588,715,846
Ratio to equity capital (%)	19.04
Classified as a large-sized corporation?	Yes
Guarantee period	Start date	2022-04-22
End date	2025-04-22
5. Total balance of debt guarantee (KRW)	1,009,314,730,800
6. Date of board resolution (decision date)	2022-04-04
- Attendance of outside directors	Present (No.)	-
Absent (No.)	-
- Attendance of auditors (members of Audit Committee who are not outside directors)	-
7. Other matters to be factored into investment decisions
- The above debt guarantee is in accordance with the extension of maturity (USD 122 million → USD 113 million) after partial repayment of Hyosung Quang Nam Co., Ltd.'s existing borrowings. - The debt (borrowing) amount of 3 above is the amount converted by using the standard exchange rate as of April 4 (1USD = KRW 1,216.10) for USD 113,000,000. - Amount of debt guaranteed of 4 above is the amount converted by applying USD 113,000,000 at the standard exchange rate on the April 4, and the scope of the debt guarantee includes USD 113,000,000, interest (including delayed interest) , and other incidental expenses. Furthermore, equity capital is based on the consolidated audit report as of the end of December 2021. - The total balance of guarantee account (KRW) of 5 above is the guarantee limit, which includes the unused balance, and is also converted by applying the standard exchange rate as of the April 4. - The date of board resolution (decision date) of 6 above is the date of decision of the Management Committee. - As for the "Condensed Financial Statements of the Debtor" below, the current fiscal year is 2021, the previous fiscal year is 2020, and two fiscal years prior is 2019. - The period of debt guarantee below for overseas entities has been omitted as the entities each hold multiple debt guarantees (each period of guarantee is different).
※ Related disclosure	-

【Condensed Financial Statements of Debtor】(in KRW mn)

Category	Total assets	Total liabilities	Total shareholders' equity	Capital stock	Sales	Net income
Current fiscal year	242,265	185,070	57,195	46,004	113,833	18,764
Previous fiscal year	187,816	153,192	34,624	46,004	15,983	-8,648
Two fiscal years prior	136,498	102,673	33,825	33,741	2,035	-918

[Balance of Debt Guarantee per Debtor]

Debtor	Relationship	Balance of debt guarantee (KRW)	Period of debt guarantee	Remarks
Hyosung Chemical Fiber (Jiaxing) Co., Ltd.	Affiliated company	60,805,000,000	-	-
Hyosung Steelcord (Qingdao) Co., Ltd.	Affiliated company	122,667,406,000	-	-
Hyosung Vietnam Co., Ltd.	Affiliated company	236,774,670,000	-	-
Hyosung Quang Nam Co., Ltd.	Affiliated company	242,003,900,000	-	-
GST Global GmbH	Affiliated company	175,511,080,800	-	-
GST Automotive Safety(Changshu) Co., Ltd.	Affiliated company	44,022,820,000	-	-
Global Safety Textiles LLC	Affiliated company	12,161,000,000	-	-
GST Safety Textiles RO S.R.L.	Affiliated company	87,030,288,000	-	-
Hyosung Luxembourg S.A.	Affiliated company	28,338,566,000	-	-

※ Relevant statutes

Financial Investment Services and Capital Markets Act