Tianjin Chuangye Environmental Protection Co., Ltd. (01065) announced that Yingshang Chuangye Water Co., Ltd., a wholly-owned subsidiary of Tianjin Chuangye Environmental Protection Group Co., Ltd., was established on May 20, 2016, with a registered capital of 53 million yuan, mainly engaged in sewage treatment and recycling, water pollution control, and water environmental pollution prevention and control services.
In June 2016, Yingshang Company signed a franchise agreement with the Housing and Urban-Rural Development Bureau of Yingshang County to be responsible for the financing, design, construction, operation, maintenance and handover of the Yingshang County Chengnan Sewage Treatment Project. The project has an operating period of 30 years and a total investment of 176 million yuan.
In order to ease Yingshang's financial pressure, Yingshang Company applied for a current loan of no more than 9.9 million yuan from the bank. The company provided a guarantee guarantee for Yingshang Company, and Yingshang Company provided a counterguarantee for the company. The scope of the company's guarantee is the entire debt under the loan contract signed with the loan bank, including the loan principal amount not exceeding RMB 9.9 million under the loan contract, as well as interest, penalties, penalties and all other related expenses. The company will be jointly and severally liable financially and legally for all debts covered by the above guarantees.