Stock Code: 000055, 200055 Stock ID: Fangda Group, Fangda B Announcement
No. 2014-02
China Fangda Group Co., Ltd.
Announcement on Providing of Guarantees for Shenzhen Fangda
Property Development Co., Ltd.
The Company and Directors guarantee the information disclosed is truthful, accurate and complete and is free from any false, misleading or material omission.
I. About the guarantee
The Company approves the plan of Shenzhen Fangda Property Development Co., Ltd., a wholly-owned subsidiary of the Company, to apply for a bank credit and urbanization construction loan of RMB210,000,000.00 to China Construction Bank with a term of two years. The Company agrees to provide guarantee for the loan and bear joint liability. The scope of the guarantee covers the full amount of RMB210,000,000.00 as well as all the interest, penalty, compensation and expenses. The Company authorizes the legal representative to make guarantee for the above-mentioned applications and enter into sign related contracts and documents.
On January 2, 2014, the Company approved the Proposal on Providing Guarantee for Shenzhen Fangda Property Development Co., Ltd. on the
26th
meeting of the
6th Board of Directors. The proposal was approved with 7 in favor, 0 objection and 0 waive.
The guarantee is subject to approval of the Shareholders' Meeting and does not
constitute a related transaction.
II. About the guaranteed parties
1. Guaranteed party:
As a wholly-owned subsidiary of the Company, Shenzhen Fangda Property
Development Co., Ltd. was established in November 2012 in Shenzhen with a
registered capital of RMB50 million and Lin Kebin as the legal representative. Its
main businesses include real-estate development on land with legal use rights,
property management; decoration engineering, cleaning services and parking lot
operation and management.
China Fangda G roup Co., Ltd.
100%
Shenzhen Fangda Property Development Co., Ltd.
3. Major financial statistics of the recent fiscal year and term (in RMB10,000)
||||
|-|-|-|
|Item|December 31, 2012(Audited)|September 30, 2013(Unaudited)|
|Total assets|1,000.38|4,978.46|
|Total liabilities|1.72|40.39|
|Net assets|998.66|4,938.07|
|Item|2012（Audited)|Between Januaryand September 2013(Unaudited)|
|Business revenue|-|-|
|Total profits|-1.79|-68.91|
|Net profits|-1.34|-60.59|

III. Guarantee agreement
The guarantee agreement will be signed after it is reviewed and passed on theShareholders’ Meeting.
1. Guarantee form: Joint liability;
2. Amount: No more than RMB210 million
3. Term: 2 years
IV. Opinion of the Board of Directors
Shenzhen Fangda Property Development Co., Ltd. is a fully-owned subsidiary of the Company. The bank credit is applied for to fund the renovation project of Fangda Town. Therefore, the Board of Directors approves the above-mentioned guarantee with joint liability.
There is no counter guarantee.
V. Amount of accumulative external and overdue guarantees
By December 31, 2013, the Company had made guarantees of RMB825,998,200,
all of which are made for fully-owned subsidiaries, accounting for75.19% of the audited net assets in 2012. There is no overdue guarantee.
The Company and its subsidiaries make no external guarantee.
VI. Reference
Resolutions of the
26th
Meeting of the
6th
Board
Board of Directors of China Fangda Group Co., Ltd.
January 4, 2014