Zhitong Finance App News, International Commercial Settlement (00147) announced that on March 14, 2024, the joint venture (as the borrower) signed a loan contract with China CITIC Bank Fuzhou (as the lender). Based on this, China CITIC Bank Fuzhou agreed to provide a loan of up to RMB 200 million to the joint venture.

On May 21, 2024, Avonord Healthcare (as the guarantor) signed a guarantee contract with China CITIC Bank Fuzhou (as lender). Based on this, Evernod Healthcare agreed to use China CITIC Bank Fuzhou as the beneficiary to guarantee the joint venture's repayment obligations under the loan agreement as collateral.

On the same day, Hong Kong Youyou Kang (as a counterguarantor) entered into a counterguarantee contract with Evernod Healthcare (as a guarantor) and the joint venture (as a borrower). According to this, Hong Kong Youyou Kang agreed to counterguarantee the beneficiary with 34% of its shares in the joint venture (corresponding to its registered capital of US$21.712 million) and related rights (including derivative rights, dividends or other income).

The joint venture obtained loans from China CITIC Bank Fuzhou to meet (among other things) the joint venture's working capital requirements. The loan will provide the joint venture with stable and necessary financial support to promote its business development; effectively reduce the capital required to raise from shareholders; improve cash flow efficiency; and increase the return on its investment. Based on the above reasons, the directors believe that the terms of the counterguarantee and counterguarantee contract are in line with the Group's overall business strategy and long-term interests. After due consideration, the directors believe that providing a counterguarantee would not harm the company's interests.