Stock Code: 000553(200553) Stock Abbreviation: ADAMA A(B) Announcement No.2019-44
ADAMA Ltd.
Announcement on Guarantees to be Provided by the
Company in Favor of Certain Subsidiary’s Loans
The Company and all members of its board of directors hereby confirm that all
information disclosed herein is true, accurate and complete with no false or
misleading statement or material omission.
I. Overview
In order to meet the daily operation and business development needs of Jiangsu
Anpon Electrochemical Co., Ltd. (hereinafter referred to as "Anpon"), a
wholly-owned subsidiary of the Company, the Company intends to provide guarantees
in favor of certain financing banks currently providing loans to Anpon, under which it
will guarantee Anpon’s repayment of such loans, in a total amount not exceeding
RMB 630 million.
According to the Listing Rules of the Shenzhen Stock Exchange, the 16th meeting of
the 8th session of the Board of Directors of the Company approved a Proposal on
Providing Guarantees in Favor of Certain Subsidiary’s Loans which do not require to
be further approved by the Company’s shareholders.
II. Basic Information of the Warrantee
Name of the Warrantee: Jiangsu Anpon Electrochemical Co., Ltd.
Established Date: November 25, 1998
Registered Address: No. 30, Huagong Road, Huai’an City
Legal Representative: Jiang Yutian
Registered Capital: RMB 251,380,000
Business Scope: Manufacture and sale of chemical products
Relationship with the Company: The Company’s wholly owned subsidiary.
Credit status: After searching on the website of disclosure of enforcement
information of China, Anpon is not a judgement debtor subject to enforcement.
Recent financial situation of the Warrantee is as follows:
Unit: ’0000
Period Total Total Debts Net Assets Revenue Assets
Assets Liability
Ratio
At June 30, 143,709.71 91,187.78 52,521.93 85,956.40 63.45%
2019
(unaudited)
At Dec 31, 2018 139,556.19 91,143.56 48,412.63 150,747.42 65.31%
(audited)
III. Main Contents of the Guarantees
The Company intends to provide joint liability guarantees for the loans for working
capital needs detailed below.
(1) Huai’an West City Branch of Industrial and Commercial Bank of China
On March 1, 2019, Anpon borrowed RMB 20 million, maturing on February 20,
2020, on June 28, 2019, Anpon borrowed an additional RMB 20 million,
maturing on June 18, 2020, and on August 1, 2019, Anpon borrowed an
additional RMB 30 million, maturing on July 30, 2020. Other than the above
loans, Anpon intends to borrow additional RMB 60 million in the second half
year of 2019. The guarantee period is subject to the provisions of the loan
contracts.
(2) Qinghe Branch of Huai’an Rural Commercial Bank
On June 1, 2019, Anpon borrowed RMB 50 million, maturing on May 29, 2020,
on June 28, 2019, Anpon borrowed an additional RMB 50 million, maturing on
June 27, 2020, and on October 30, 2018, Anpon borrowed an additional RMB 50
million, maturing on October 29, 2019. other than the above loans, Anpon
intends to borrow additional RMB 100 million in the second half year of 2019.
The guarantee period is subject to the provisions of the loan contracts.
(3) Huai’an Branch of Bank of Communications
Anpon intends to borrow RMB 60 million from Huai’an Branch of Bank of
Communications in the second half year of 2019. The guarantee period is subject
to the provisions of the loan contracts.
(4) Huai’an Qing JiangpuBranch of Agricultural Bank
Anpon intends to borrow RMB 100 million from Huai’an Qing Jiangpu Branch
of Agricultural Bank in the second half year of 2019. The guarantee period is
subject to the provisions of the loan contracts.
(5) ChemChina Finance Co., Ltd.
Anpon intends to borrow RMB 70 million from ChemChina Finance Co., Ltd. in
the second half year of 2019. The guarantee period is subject to the provisions of
the loan contracts.
IV. Accumulated Quantity of External Guarantees and Overdue Guarantees
Currently the balance of the guarantees that have been provided by the Company
and/or its subsidiaries is USD 241.5544 million (RMB1,658.6816 million). After
providing the above guarantee, the balance of the guarantees provided by the
Company and/or its subsidiaries is USD 331.5544million (RMB2,288.6816 million)
million. This amount accounts for approximately 10.27% of the latest audited net
assets of the Company.
No guarantee is provided by the Company and/or its subsidiaries for the favor of
entities not consolidated in the Company's financial statements.
The Company and its controlled subsidiaries do not have overdue guarantees.
V．Opinions of the Board of Directors
The Board of Directors is of the opinion that: (i) the guaranteed funds are used for
the daily operation needs of the guaranteed party which is a wholly owned
subsidiary of the Company; (ii) the financial risk of the guarantees is under the
Company's control; and (iii) the guarantees neither significantly impact the normal
operation of the Company, nor violate the relevant provisions of the CSRC and the
Articles of Association of the Company.
VI. List of Reference Documents
1. Resolution of the 16th Meeting of the 8th session of the Board of Directors of the
Company.
It is hereby announced.
Board of Directors of ADAMA,
Ltd.
August 22, 2019
