Document:

Exhibit 4.22

 

(Summary Translation)

 

Credit Line Agreement with China Guangfa Bank, Urumqi Branch  

 

	Date of the Agreement	May 27, 2019  
	 	 
	Creditor (Party A)	China Guangfa Bank, Urumqi Branch  
	 	 
	Borrower (Party B)	Xinjiang Daqo New Energy Co., Ltd.  
	 	 
	Amount of revolving credit facility	Up to RMB350 million (including up to RMB150 million of unsecured loans)  
	 	 
	Form of loans	Working capital loans, bank’s acceptance bill, discount on commercial bills, letter of credit
	 	 
	Term of credit facility	from May 27, 2019 to May 16, 2020  
	 	 
	Use of loan proceeds	Business operations
	 	 
	Interest rate	120% of the benchmark rate issued by the PBOC  
	 	 
	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 B does not use the loan proceeds according to the Agreement, the penalty rate shall be 100% over the interest rate  
	 	 
	Repayment of interest	Interest shall be paid quarterly on the 21th of the last month of a quarter  
	 	 
	Repayment of principal	Principal shall be deposited in the specific repayment account three days prior to the maturity date and repaid in full by the maturity date  
	 	 
	Security  	Cash deposit 

 

     

     

    

 

	Party B’s Undertakings	Party B undertakes the following:

                        

                       (1) Party B shall provide its financial statements (including but not limited to annual reports, quarterly reports and monthly reports) and other relevant materials to Party A on a regular basis;

                        

                       (2) Party B shall accept and cooperate with the inspection and supervision of Party A over its use of the loans and the related production operations and financial activities;

                        

                       (3) Party B shall repay the loans in accordance with the agreement and cooperate with the management and inspection of Party A over its various accounts. Party B shall provide written explanations to Party A within two working days, if Party A notices any abnormal cash flow changes and requires Party B to provide explanation;

                        

                       (4) When Party B submits its drawdown applications, Party B shall provide accurate documents to Party A in a timely manner. Otherwise, Party B shall be liable for any losses caused by its failure to submit the correct documents timely;

                        

                       (5) Party B shall obtain Party A’s consent, if any of the following events occurs which may affect the financial condition and ability of performance of Party B, including but not limited to Party B’s conducting of division, merger, joint operation, equity and cooperative joint ventures, contracting, reorganization, restructuring, listing of shares, reduction of registered capital, transfer of material assets or equity interests, investment, assumption of material debt, or debt or equity financing;

                        

                       (6) Party B shall report to Party A timely, if any of the following events occurs which may affect the financial conditions and ability of performance of Party B, including but not limited to closure, suspension, dissolution, cancellation, or bankruptcy, material litigation or arbitration, senior management’s involvement in criminal cases, deterioration of financial condition or business operations, or default under other agreements;

                        

                       (7) Party B shall ensure its operations comply with regulations in relation to, among others, industrial policy, financial and tax policy, market entry requirement, environmental protection assessment, energy conservation, energy and pollution control, resource utilization, land and city planning and labor security. If Party B violates the abovementioned regulations, Party A is entitled to, among others, cease to extend the loan, declare all accrued loans immediately due and payable, dispose of the pledged assets immediately and require Party B to buy additional liability insurance relating to energy conservation and pollution;

                        

                       (8) Party A’s debt shall be senior to Party B’s loans from Party B’s shareholders and has the same seniority as other comparable indebtedness of Party B;

                        

                       (9) Party B shall not declare or pay dividends in the relevant financial years in event that (i) its after-tax profit is nil or negative or insufficient to make up previous year’s cumulative losses; (ii) its pre-tax profit has not been used to repay the principal and interest by the maturity dateor (iii) its pre-tax profit is insufficient to repay the principal and interests for the next installment;

                        

                       (10) Party B shall not dispose of its assets by means which will affect its ability to repay the debt and Party B shall not guarantee the debt that exceeds or in aggregate exceeds the limits stipulated in its articles of association;

                        

                       (11) Party B shall repay the principal and interests timely and pay relevant expenses incurred due to the execution and performance and disputes under the agreement including but not limited to the attorney fee and other expenses Party A incurred for the debt collection including the litigation expenses, enforcement expenses and attorney fees; and

                        

                       (12) Enhance its environment and social risk management.  

 

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

                        

                       (1) Party B fails to perform its repayment obligations to Party A in accordance with the Agreement;

                        

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

                        

                       (3) Party B fails to repay the loans in accordance with the Agreement;

                        

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

                        

                       (5) Any event stipulated in the Agreement that occurs and, in the opinion of Party A, will adversely affect Party B’s financial condition and ability to repay the loans, and Party B fails to provide a guarantor;

                        

                       (6) Party B breaches, or a cross-default occurs under, any other agreement with Party A or any other branches of China Guangfa Bank Co., Ltd;

                        

                       (7) Party B fails to provide written explanations regarding abnormal changes of cash flows in relevant accounts under this Agreement within the time agreed with Party A;

                        

                       (8) Party B fails to provide accurate documents and materials relating to the loans and loan disbursement;

                        

                       (9) Party B terminates its business or suffers from dissolution, cancellation or bankruptcy;

                        

                       (10) Party B otherwise violates this Agreement;

                       

 

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                       If any of the above events occurs, Party A is entitled to take any or all of the following measures:

                        

                       (1) Change the loan disbursement methods;

                        

                       (2) Require Party B to rectify its violations within a specified period of time;  

                        

                       (3) Reduce, suspend or terminate the credit facility in whole or in part;

                        

                       (4) Suspend or terminate the drawdowns pursuant to this Agreement or other agreements entered into between Party A and Party B in whole or in part; suspend or terminate the disbursement of loans or trade financing in whole or in part;

                        

                       (5) Declare the principal, interest and other amounts immediately due and payable;

                        

                       (6) Terminate or rescind the Agreement in whole or in part or rescind other agreements entered between Party A and Party B;

                        

                       (7) Require Party B to compensate Party A for the losses incurred due to Party B’s violation of the Agreement;

                        

                       (8) Deduct the principal from the account of Party B opened with Party A to repay all or part of the debt owed to Party A;

                        

                       (9) Exercise rights over the collateral;

                        

                       (10) Take stricter payment management measures or enhanced monitoring of Party B and its related parties, or add Party B into the blacklist and submit to the regulatory authorities and credit investigation authorities; or  

                        

                       (11) Take any other measures considered necessary or feasible
by Party A.  

 

    4Exhibit 4.23

 

(Summary Translation)

 

Loan Agreement with Bank of China, Zhenjiang Branch  

 

	Date of the Agreement	April 17, 2019  
	 	 
	Borrower (Party A)	Xinjiang Daqo New Energy Co., Ltd.  
	 	 
	Lender (Party B)	Bank of China, Zhenjiang Branch  
	 	 
	Use of loan proceeds	Construction multicrystalline silicon production facilities  
	 	 
	Amount	RMB400 million  
	 	 
	Term of loan	Sixty months
	 	 
	Interest rate	10% over PBOC’s one-year to five-year loan prime rate as of the working day immediately before the date of actual drawdown 
	 	 
	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 five bank working days before maturity of each installment of principal and interest, and Party B may deduct relevant amounts from such account to repay the relevant principal and interest on the corresponding maturity date.   Interest is payable on the 21th day of each month of a quarter. Principal is payable at a specified repayment schedule.  
	 	 
	Guarantee 	Maximum amount guarantees provided by Daqo Group Co., Ltd. and Daqo New Energy Corp. and maximum amount mortgage provided by Xinjiang Daqo New Energy Co., Ltd. (the “Guarantors”)  

 

     
 

     

    

 

	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 and maintain its debt to asset ratio at no more than 70%;

                        

                       (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; and
	 	 
	 	(7) not transfer loan to an affiliate, unless such transfer conforms to the purpose specified or approved by Party B.

 

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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 subject to 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) change the pre-conditions to disburse the loan or make payments in accordance with Party A’s credit condition;

                        

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

                        

                       (7) 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;

                        

                       (8) 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;

                        

                       (9) exercise its right over the security and require the guarantors to perform their obligations; and

                        

                       (10) other measures that Party B deems necessary and feasible.  

 

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