Zhitong Finance App News, Zhongcheng Energy (02337) announced that in October 2023, Changchun Yitonghe and the Group obtained loan financing of up to RMB 330 million from Industrial Bank Changchun. Of the loan financing amounting to RMB 330 million, a total of RMB 150 million was borrowed in accordance with a financing agreement signed between some member companies of the Group and Industrial Bank Changchun, and Changchun Yitonghe provided corporate guarantees. Of the balance of approximately RMB 180 million, approximately RMB 65 million was borrowed in the past and future to issue a letter of credit by Industrial Bank Changchun. On October 24, 2023, Changchun Yitonghe (as borrower) and Industrial Bank Hong Kong (as lender) entered into a loan agreement. According to this, Industrial Bank Hong Kong agreed to grant a loan amount of up to RMB 130 million, on the condition that Changchun Yitonghe must provide a corporate guarantee and that the Group must pledge certain assets to guarantee the fulfillment of the loan agreement's repayment obligations.

Jilin Haotuo (as depositor) and Industrial Bank Changchun (as grantor) set up a pledge, which will take effect from October 17, 2023. Based on this, Jilin Haotuo agreed to pledge their rights to Industrial Bank Changchun to pledge their rights to the pledged property. The pledge was provided by Jilin Haotuo using Industrial Bank Changchun as the beneficiary as collateral for the loan agreement.

Since the proceeds from the loan agreement are used to pay for the purchase of refined oil products required to operate the commissioned gas stations and the commissioned oil storage facilities, and these outsourced gas stations and commissioned oil storage facilities are owned by the Yitong River in Changchun and operated by the group in accordance with the entrustment management agreement, the company believes that it is reasonable to provide collateral for the loans obtained from its business. Furthermore, since the repayment risk is borne by Yitong River in Changchun and the value of the assets involved in the pledge is far less than the amount of money obtained from the loan agreement used by the Group, the company also believes that this arrangement is in the company's interest.