Chinanewtown (01278) announced that the company has recently received two letters, both of which were sent by Agricultural Bank of China Limited (Banks) to Beijing Xincheng Kaiyuan Asset Management Co., Ltd. (Xincheng Kaiyuan) (formerly known as Guokai New City (Beijing) Asset Management Co., Ltd. (Guokai New City), an indirectly wholly-owned subsidiary established by the company under Chinese law). The letters were issued based on the guarantee signed by Xincheng Kaiyuan (then known as Guokai New City) and Jiangsu Province Construction Engineering Group Co., Ltd. (Jiangsu Province Construction) on January 21, 2021, for the loan financing (bank loan) of up to RMB 0.5 billion granted by Banks to Nanjing Guoying Zhongxi Construction Development Co., Ltd. (joint venture enterprise, a jointly controlled entity of the group) and guaranteed by the Bank. Xincheng Kaiyuan and Jiangsu Province Construction have agreed to provide guarantees in accordance with their respective equity ratios for the repayment of the bank loan and interest granted by Banks to the joint venture enterprise (Guarantee).
Chinanewtown (01278) announced that the company has recently received two letters, both of which were sent by Agricultural Bank of China Limited (Banks) to Beijing Xincheng Kaiyuan Asset Management Co., Ltd. (Xincheng Kaiyuan) (formerly known as Guokai New City (Beijing) Asset Management Co., Ltd. (Guokai New City), an indirectly wholly-owned subsidiary established by the company under Chinese law). The letters were issued based on the guarantee signed by Xincheng Kaiyuan (then known as Guokai New City) and Jiangsu Province Construction Engineering Group Co., Ltd. (Jiangsu Province Construction) on January 21, 2021, for the loan financing (bank loan) of up to RMB 0.5 billion granted by Banks to Nanjing Guoying Zhongxi Construction Development Co., Ltd. (joint venture enterprise, a jointly controlled entity of the group) and guaranteed by the Bank. Xincheng Kaiyuan and Jiangsu Province Construction have agreed to provide guarantees in accordance with their respective equity ratios for the repayment of the bank loan and interest granted by Banks to the joint venture enterprise (Guarantee).
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As of the date of this announcement, the joint venture enterprise has not repaid the outstanding amount. The group is currently evaluating possible actions and their related impacts, and is consulting with the auditors to assess the financial impact on this year's performance. If necessary, we will issue another announcement. The group will also seek professional opinions on the actions that may be taken against the joint venture enterprise after fulfilling its guarantee obligations, including but not limited to legal and financial opinions.