Legal analysis: calculation formula: guarantee ratio = (equivalent to loan-deposit-bank deposit certificate-national debt credit business)/(balance of core tier-one capital+balance of other tier-one capital+balance of tier-two capital-balance of loan loss reserve) × 100%.

Legal basis: Article 15 of the Interim Measures for Assessment of Risk Supervision Indicators of Financial Companies of Enterprise Groups is the proportion of guarantee risk exposure to total capital. Guarantee risk exposure refers to the credit business equivalent to loans, after deducting the value of deposits, pledged bank deposits and national debt. The calculation of guarantee ratio does not include contingent items related to trade and transactions, such as bid guarantee and performance guarantee. The guarantee ratio of the finance company shall not be higher than 100%.