RiseSun subsidiary secures financing with inter-company guarantee

RiseSun Real Estate Development announced that its wholly-owned subsidiary, RiseSun (Xuzhou) Real Estate Development, has entered into a cooperation agreement for a principal amount not exceeding 70.57 million yuan. To secure this financing, another subsidiary, Xuzhou Rongkai Real Estate, will provide mortgage guarantees using its assets. The total principal amount of the guarantee is 70.57 million yuan, with a guarantee period not exceeding 45 months.

As of the disclosure date, RiseSun’s total actual guarantees amount to 44.22 bn yuan, representing 297.68% of the company's net assets from the latest audited period. Guarantees provided by the company and its controlled subsidiaries to units outside the consolidated financial statements total 7.755 bn yuan, or 52.21% of the latest audited net assets. Overdue guarantees amount to 11.411 bn yuan.

The company's board believes that providing this guarantee for its wholly-owned subsidiary, which has low operational risk, will support its development without harming the company's or shareholders' interests. The board also noted that RiseSun (Xuzhou) Real Estate Development has sufficient capacity to repay the financing.