Document:

Exhibit 4.24

 

(Summary Translation)

 

Loan Agreement with Bank of China, Shihezi Branch  

 

	Date of the Agreement	May 5, 2019  
	 	 
	Borrower (Party A)	Xinjiang Daqo New Energy Co., Ltd.  
	 	 
	Lender (Party B)	Bank of China, Shihezi Branch  
	 	 
	Use of loan	Payment of electricity bills   
	 	 
	Amount	RMB50 million  
	 	 
	Term of loan	Twelve months 
	 	 
	Interest rate	China’s National Inter-Bank Funding Center’s one-year loan prime rate as of the working day immediately before the date of actual drawdown plus 47.5 basis points. 
	 	 
	Penalty rate	In the event of failure to repay the loan in accordance with the Agreement, the penalty rate shall be 50% over the interest rate.   In the event that Party A does not apply the loan according to the Agreement, the penalty rate shall be 100% over the interest rate.  
	 	 
	Repayment 	Party A shall deposit sufficient funds in the account no later than one bank working day before maturity of each installment of principal and interest on the 21th of the last month of each quarter, and Party B may deduct relevant amounts from such account to repay the relevant principal and interest on the corresponding maturity date.  
	 	 
	Security 	Maximum amount of the loans jointly and severally guaranteed by Daqo New Energy Corp. and Daqo Group Co., Ltd.   

Collateral provided by Xinjiang Daqo New Energy Co., Ltd.  

 

     

     

    

 

	Party A’s Covenants	Party A shall:

                        

                       (1) provide its financial statements and other relevant materials to Party B on a regular or timely basis as requested by Party B;

                        

                       (2) accept credit inspection and supervision of Party B, and render sufficient assistance and cooperation;

                        

                       (3) obtain Party B’s prior written consent in the event of any merger, spinoff, capital decrease, equity transfer, investment, material increase in indebtedness, major assets or creditors’ rights transfer, or other event adversely affecting Party A’s solvency;

                        

                       (4) notify Party B in a timely manner, under the following circumstances:

 

	 	i.	There are changes to the articles of association, business scope, registered capital or legal representative
    of Party A or the Guarantors;
	 	 	 
	 	ii.	Any form of joint operation, equity or contractual joint venture with foreign parties, contractual operation, restructuring,
    shareholding structure reform, planned listing or other change of business models;
	 	 	 
	 	iii.	Party A’s involvement in material litigation or arbitration, or attachment, detention or custody of property or
    collateral, or additional security created on the collateral;
	 	 	 
	 	iv.	Party A is shut down, dissolved, liquidated, suspended of business for rectification, cancelled, revoked of business license,
    or filed for bankruptcy;
	 	 	 
	 	v.	The shareholders, directors and existing senior officers are involved in material litigation or economic disputes;
	 	 	 
	 	vi.	Party A has breached any of its other contracts; and
	 	 	 
	 	vii.	Party A has difficulty in business operation or its financial condition deteriorates.

 

	 	(5) not declare any dividends if its after-tax profit is nil or negative or insufficient to make up for previous years’ cumulative losses;
	 	 
	 	(6) not dispose of its assets which will impair its debt performance capacity; 
	 	 
	 	(7) not transfer loan to an affiliate, unless such transfer conforms to the purpose specified or approved by Party B;
	 	 
	 	(8) provide reports to Party A on environmental and social risks, enhance its environmental and social risk management and accept supervisions from Party A; and 
	 	 
	 	(9) use the loan proceeds to pay electricity bills only.

 

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	Breach	Any of the following constitutes a default under this Agreement:

                        

                       (1) Party A fails to repay the loans in accordance with the Agreement;  

                        

                       (2) Party A fails to use the loan proceeds in accordance with this Agreement;  

                        

                       (3) Any of the representations made by Party A is not true or Party A breaches any of the undertakings made by it;  

                        

                       (4) There is a material change in Party A or its guarantor’s financial condition, and Party A fails to provide additional security in accordance with this Agreement;  

                        

                       (5) Party A or its guarantor breaches, or a cross-default occurs under, any other agreement with Party B or any other branches of Bank of China;  

                        

                       (6) Party A terminates its business or is subject to dissolution, cancellation or bankruptcy;  

                        

                       (7) Party A is involved in significant economic disputes, lawsuits, arbitrations and administrative punishment, or Party A’s property is seized, forfeited or enforced, which will affect Party A’s ability to perform its obligations of this Agreement;  

                        

                       (8) There is an unusual change in Party A’s principal investors and key management or a judicial investigation involving Party A’s principal investors and key management, which will affect Party A’s ability to perform its obligations of this Agreement; or  

                        

                       (9) Party A otherwise violates this Agreement.  

                        

                       Upon occurrence of events of breach, Party B may take any one or more of the following actions depending on specific circumstances:  

                        

                       (1) require Party A or the Guarantors to rectify their breaches within a specified period of time;  

                        

                       (2) reduce, suspend, cancel or terminate the loans to Party A in whole or in part;  

                        

                       (3) suspend or terminate, in whole or in part, loan drawdown application or other business applications of Party A; and to suspend or cancel or terminate, in whole or in part, the drawdown, payment and processing of the loan not released yet or trade financing not processed yet;  

                        

                       (4) declare that the principal and interest of the loans under this Agreement and other trade financing provided by Party B and any other amounts payable shall become immediately due and payable in whole or in part;  

                        

                       (5) terminate or rescind the Agreement, and to terminate or rescind other contracts between Party A and Party B;  

                        

                       (6) require Party A to compensate for losses caused to Party B as a result of its breach, including, without limitation, litigation costs, attorney’s fees, notarization fees, enforcement costs and other relevant expenses incurred in connection with realization of the creditor’s right;  

                        

                       (7) deduct the funds from the accounts opened by Party A with Party B and other branches of Bank of China to discharge all or part of the debts. The funds that have not matured yet in the accounts shall become mature in advance;  

                        

                       (8) exercise its right over the security;  

                        

                       (9) require the Guarantors to perform their obligations; and   (10) other measures that Party B deems necessary and feasible.  

 

    3Exhibit 4.25

 

(Summary Translation)

 

Loan Agreement with China
Everbright Bank, Urumqi Branch  

 

	Date of the Agreement	February 28, 2019   
	 	 
	Borrower (Party A)	Xinjiang Daqo New Energy Co., Ltd.  
	 	 
	Lender (Party B)	China Everbright Bank, Urumqi Branch  
	 	 
	Use of loan proceeds	Business operations  
	 	 
	Principal	RMB70 million  
	 	 
	Term of loan	From February 28, 2019 to February 27, 2020
	 	 
	Interest rate	Fixed rate at 5.8725% per year  
	 	 
	Penalty rate	In the event of late repayment, a penalty interest rate of 50% over the fixed rate will be imposed on the overdue loan until all principal and interest are repaid.

     

    In the event of applying the loan proceeds other than the usage provided in the Agreement, a penalty interest of 50% over the fixed rate will be imposed until all principal and interest are repaid.

     

    A compound interest will be imposed on any overdue interest.  

	 	 
	Interest settlement day	Interest shall be paid quarterly at the 20th day of the last month of each quarter.  
	 	 
	Repayment of principal	Principal shall be repaid in full on February 27, 2020.

     

    Party B is entitled to deduct funds from Party A’s accounts opened at China Everbright Bank for the repayment of any overdue loan.  

	 	 
	Guarantee and Security	Joint and several liability guarantee provided by Daqo Group Co., Ltd., Daqo New Material Co., Ltd. and Chongqing Daqo New Energy Co., Ltd.  

 

     

     

    

 

	Party A’s Covenants	
        Party A shall:

         

        1. Notify Party B at least 30 days in advance and obtain a written
        consent from Party B in respect of investment, a substantial increase of debt financing, merger, spinoff, decrease of share capital,
        share transfer, asset transfer, suspension of business, dissolution, bankruptcy and other actions which will adversely affect the
        interest of Party B, and shall fulfill its repayment obligations;

         

        2. Within the term of loan, without Party B’s written
        consent, Party A shall not repay loans of any third party, provide any guarantee or set any mortgage or pledge over Party A’s
        asset or similar interest which would affect Party A’s ability to repay the loan under this Agreement; and

         

        3. Notify Party B in writing immediately in respect of any other
        matter which may jeopardize Party A’s normal operations or cause a material adverse impact to its ability to perform this
        Agreement.

         

 

	Breach	
        Any of the following constitutes a default
        under this Agreement:

         

        (1) Party A fails to repay the loans in
        accordance with the Agreement;

         

        (2) Party A fails to use the loans proceeds
        in accordance with this Agreement;

         

        (3) Party A fails to comply with any of
        the undertakings made by it;

         

        (4) A material cross-default occurs;

         

        (5) Party A provides false financial information,
        omits material facts or reject Party B’s supervision in connection with Party A’s use of proceeds, business operations
        or financial activities;

         

        (6) Any of the representations made by
        Party A or its guarantor is not true or misleading;

         

        (7) Party A or its guarantor violates other
        agreements;

         

        (8) Party A or its guarantor’s financial
        condition deteriorates;

         

        (9) Party A or its guarantor fails to provide
        a debt repayment scheme which Party B deems satisfactory in the event of any merger, spin-off and restructuring;

         

        (10) Party A or its guarantor terminates
        its business or subject to dissolution, cancellation or bankruptcy;

         

        (11) Party A fails to notify Party B of
        the following events in a timely manner, including any material amendment on its articles of association, substantial changes in
        its business operation, material changes in its accounting principles and the substantial changes in financial condition of Party
        A and its parent company and subsidiaries;

        

 

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	 	(12)
Party A is involved in lawsuits, arbitrations or administrative procedures, which will have material adverse effect on its solvency;

         

        (13) Party A’s property is seized,
        frozen or being put under scrutiny, which will have adverse effect on Party A’s ability to perform its obligations under
        this Agreement;

         

        (14) Party A otherwise violates this Agreement
        and fails to take remedial measures which Party B deems satisfactory; and

         

        (15) Any event that will materially and
        adversely affect Party B to exercise its rights of this Agreement.

         

        Upon occurrence of a breach by Party A, Party B may take any
        one or more of the following actions subject to specific circumstances:

         

        (1) cease disbursing the loan under this Agreement;

         

        (2) declare the outstanding loans under this Agreement immediately
        due and payable;

         

        (3) require Party A to provide additional/alternative guarantor
        or other collateral;

         

        (4) deduct the funds from the accounts opened with Party A or
        any other branches of China Everbright Bank to discharge all or part of the debt;

         

        (5) exercise its rights over the security; and

         

        (6) other measures that Party B deems appropriate.

	 

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