E-Commodities (01733) issued a notice that in the near future, two wholly-owned subsidiaries, Hainan Fuduo Supply Chain Management Co., Ltd. (Hainan Fuduo) and E-Commodities Beijing Supply Chain Management Co., Ltd. (E-Commodities Beijing), reached several financing agreements with Bank of East Asia (China) Co., Ltd. Beijing Branch (the bank) to provide a total trade financing credit limit of no more than RMB 200 million and USD 3.92 million in derivative quotas (comprehensive credit) to Hainan Fuduo and E-Commodities Beijing, from June 4, 2024, to June 4, 2029, for a period of five years, respectively.
E-Commodities (01733) issued a notice that in the near future, two wholly-owned subsidiaries, Hainan Fuduo Supply Chain Management Co., Ltd. (Hainan Fuduo) and E-Commodities Beijing Supply Chain Management Co., Ltd. (E-Commodities Beijing), have reached several financing agreements with Bank of East Asia (China) Co., Ltd. Beijing Branch (the bank), with the total principal of not more than RMB 200 million and USD 3.92 million in derivative quotas (comprehensive credit) provided to Hainan Fuduo and E-Commodities Beijing, respectively. The financing period is from June 4, 2024 to June 4, 2029, for a period of five years.
As part of the financing agreement provided by the bank, Hainan Fuduo and E-Commodities Beijing shall be responsible for opening letters of credit, applying for drafts, and conducting other activities in the course of daily business. In view of the comprehensive credit provided by the bank to Hainan Fuduo and E-Commodities Beijing under the financing agreement, the company agreed to provide corporate guarantees to the bank to guarantee Hainan Fuduo and E-Commodities Beijing's performance of their obligations under the financing agreement.
The board of directors believes that the financing agreement provides additional funding channels to strengthen the cash flow of Hainan Fuduo and E-Commodities Beijing in their business operation, which is advantageous to the group.