Joy City Real Estate (00207) issued an announcement relating to (including) Chongqing Yuesheng's investment proposal to Poly (Chongqing)...
According to the Zhitong Finance App, Joy City Real Estate (00207) issued an announcement regarding (including) matters relating to (including) previous loans and existing loans provided by Chongqing Yuesheng to Poly (Chongqing) Investment. On March 7, 2024, Chongqing Yuesheng (an indirect non-wholly-owned subsidiary of the company) entered into a supplementary agreement with Poly (Chongqing) Investment. Chongqing Yuesheng will provide an additional loan of up to RMB 91.082 million (unsecured non-revolving loan) to Poly (Chongqing) Investment in accordance with the terms and conditions of such loan agreements; and an annual interest rate of 1.35% on the loan amount withdrawn from existing loans and additional loans after the date of the supplementary agreement. Chongqing Yuesheng is mainly engaged in residential property development and investment in Liangjiang New Area, Chongqing, China. As of the date of this announcement, Chongqing Zeyue (an indirect wholly-owned subsidiary of the Company) and Poly (Chongqing) Investment held 51% and 49% of the interests respectively. The additional loan was provided by Chongqing Yuesheng to Poly (Chongqing) Investment in proportion to the shares invested by Poly (Chongqing) in Chongqing Yuesheng.
The announcement stated that with regard to loans provided by Chongqing Yuesheng to its shareholders as a whole, there are sufficient measures to protect the interests of Chongqing Yuesheng: in the event of shareholders' default, the remedies that Chongqing Yuesheng can take under the relevant loan agreement; Chongqing Yuesheng's assessment of borrowers, including the estimated amount of unpaid principal, related interest and potential fines of such loans with the estimated amount of profit that the relevant shareholders should account for Chongqing Yuesheng's profit and the amount invested in the registered capital (the total total amount is not less than RMB 595 million) (this is due to the fact that Chongqing Yuesheng has the right to make such payments in case of default by relevant shareholders deduction); Chongqing Yuesheng has the right to repay the loan early according to the requirements of the relevant agreement according to its own financial needs. Under any circumstances, shareholders of Chongqing Yuesheng are expected to repay such loans before Chongqing Yuesheng is liquidated or deregistered.