1. Conditions for the company to act as a guarantor. The guarantor in the external guarantee can be a Chinese-funded financial institution or a non-financial enterprise legal person. Chinese-funded financial institutions authorized to engage in foreign guarantee business can issue foreign guarantees, and non-financial corporate entities with subrogation ability, including domestic-funded enterprises and foreign-invested enterprises, can issue foreign guarantees. State organs and institutions may issue external guarantees when granting loans to foreign governments or international economic organizations with the approval of the State Council. In addition, Chinese-funded financial institutions and non-financial institutions need to meet the following specific conditions in order to become guarantors of external guarantees. If the guarantor is a Chinese-funded financial institution, it shall meet the following conditions: the sum of the external guarantee balance, domestic foreign exchange guarantee balance and foreign exchange debt balance of the financial institution shall not exceed 20 times of its own foreign exchange funds; The sum of foreign exchange loan balance, foreign exchange guarantee balance (calculated by 50%) and foreign exchange investment (equity participation) provided by financial institutions for enterprise legal persons shall not exceed 30% of their own foreign exchange funds. If the guarantor of external guarantee is a non-financial enterprise legal person, the balance of external guarantee shall not exceed 50% of its net assets and shall not exceed its foreign exchange income in the previous year. In addition, when providing external guarantees, the proportion of net assets of domestic trading enterprises to total assets shall not be less than15% in principle; When non-trading domestic-funded enterprises provide external guarantees, the ratio of net assets to total assets shall not be less than 30% in principle. Trading enterprises and non-trading enterprises are divided according to the main items in the business license issued by the State Administration for Industry and Commerce.

2. Under the circumstance that the company is prohibited from being a guarantor, the laws of some countries and regions have certain restrictions on the company as a guarantor. Directors and managers may not use the company's assets to guarantee the debts of shareholders or other individuals of the company. Therefore, the company is unable to act as a guarantor for the debts of its shareholders or other individuals. If a director or manager violates the provisions of Article 60 of the Company Law and provides a guarantee for the debts of the shareholders or other individuals of the Company with the company's assets, the guarantee contract shall be invalid. Unless the creditor knows or should know, the debtor and the guarantor shall be jointly and severally liable for the creditor's losses.

3. What should be noted here is: 1. Directors and managers, not the board of directors, are the subjects of prohibition; 2. The principal debt prohibited from guarantee is the debt of shareholders or other individuals; 3. The property used for guarantee is the company's assets, and there is no restriction on personal assets used for guarantee; 4. Where a director or manager provides a guarantee in violation of the above provisions, and the creditor does not know or should not know, the debtor and the guarantor shall be jointly and severally liable for compensation. Where the creditor knows or should know, the part of the guarantor that bears civil liability shall not exceed the part that the debtor cannot pay off 1/2.