On the evening of June 19, Vantone Development issued an announcement on providing guarantees for wholly-owned subsidiaries.
The announcement shows that on October 20, 2016, Beijing Wantong Fashion Real Estate Co., Ltd., a wholly-owned subsidiary of Vantone Development (hereinafter referred to as “Wantong Fashion”), and the Industrial and Commercial Bank of China Co., Ltd. Beijing Free Trade Pilot Zone International Business Service Area Sub-branch (hereinafter referred to as “ICBC Beijing Free Trade Zone Sub-branch”) signed the “Fixed Assets-Backed Financing Loan Contract”, and ICBC Beijing Free Trade Zone Sub-branch lent a total of 930 million yuan to Vantone Fashion according to the contract. As of June 2022, Vantone Fashion’s loan principal balance from ICBC Beijing Free Trade Zone Sub-branch was RMB 710 million.
On June 14, 2022, Vantone Fashion and ICBC Beijing Free Trade Zone Sub-branch signed a “Supplementary Agreement” to change the repayment plan under the loan contract. The remaining principal of the loan will be repaid in equal quarterly amounts from the sixth year of loan issuance. At the same time, supplementary agreements have been made on matters such as supervision accounts and breach of contract liabilities. Vantone Development, as the sole shareholder of Vantone Fashion, undertakes joint and several liability guarantee for the debts of Vantone Fashion under the loan contract and its supplementary agreement.
Vantone Development stated in the announcement that as of March 31, 2022, although Vantone Fashion’s asset-liability ratio exceeded 70%, as a wholly-owned subsidiary, Vantone Development can fully grasp its operation and management, and make significant The decision-making and daily operation and management of matters have the right to control, and the guarantee risk is within the controllable range. This guarantee is conducive to the normal development of the subsidiary’s business.
The announcement shows that as of the disclosure date of this announcement, excluding this guarantee, Vantone Development has provided a total of 525 million yuan of guarantees to its holding subsidiaries, accounting for 7.48% of the audited net assets in 2021. Vantone Development and Holdings Subsidiaries do not have overdue external guarantees, nor do they provide guarantees for controlling shareholders, actual controllers and their related parties.