According to the Zhitong Finance App, Ziyuanyuan (08223) announced that on August 30, 2022, Ruiheng, a wholly-owned subsidiary of the company, signed a 2022 cooperation agreement with China Construction Bank. China Construction Bank agreed to provide customers with a trade loan of no more than RMB 500 million to purchase dental equipment from Ruiheng. The individual loan term and amount of each trade loan shall not exceed 36 months and RMB 1 million, respectively. The trade loan can only be used to purchase dental medical equipment from Ruiheng.
According to the 2022 cooperation agreement, the guarantor shall execute the guarantee with China Construction Bank as the beneficiary to guarantee the customer all repayment obligations under the trade loan agreement to be granted by China Construction Bank. On the date of this announcement, since the company issued the announcement on April 17, 2023, the total amount of additional guarantees added was approximately RMB 29.525 million and involved 138 customers. The additional guarantee amount for the past 12 months from July 26, 2023 is approximately RMB 106 million.
The announcement said that the company and Ruiheng's guarantee of customer repayment obligations to China Construction Bank will help promote sales of dental medical equipment and achieve capital return.