The financial network reported on November 12th (Reporter Wu Weiling) that after 8 consecutive daily limit up movements, Nanfang Black Sesame (000716.SZ) is now facing bearish news, if the controlling shareholder fails to pay the performance guarantee deposit on time, the company may face a 'special treatment' due to non-compliance with the guarantee.

Tonight, Nanfang Black Sesame announced that as a guarantor for the loan to Nanning Children's Hospital, the controlling shareholder, Guangxi Five Categories Food Group Co., Ltd. (referred to as the 'Five Categories Group'), has made a bottom commitment. It is expected that this matter will not affect the company's financial statements, but if the Five Categories Group fails to pay the corresponding performance guarantee deposit to the company by November 22, the company's stock trading will be subject to 'other risk warnings'.

In 2020, for the construction needs of the PPP project, Nanning Children's Hospital applied for a project-specific fund of 0.505 billion yuan from the Nanning branch of Guangfa Bank. Nanfang Black Sesame, as the largest shareholder of Guangtou Guoyi, the parent company of Nanning Children's Hospital, with a maximum holding of 36.41% equity in Guangtou Guoyi (corresponding to a contribution of 65.53 million yuan), provided a guarantee for the aforementioned loan.

Nanfang Black Sesame stated that due to the urgency of the guarantee matter, the company was unable to timely perform the review and disclosure procedures for this matter. In November 2022, the Nanning branch of Guangfa Bank declared the entire loan due ahead of schedule on the grounds of Nanning Children's Hospital's default. According to the first-instance judgment of the Intermediate People's Court of Nanning, Nanning Children's Hospital needs to pay a total of approximately 0.206 billion yuan to the Nanning branch of Guangfa Bank for the loan principal, interest, and legal fees. At the same time, if Nanning Children's Hospital fails to repay the aforementioned debt, Nanfang Black Sesame is liable for half of the amount that cannot be repaid.

This situation triggered the 'Shenzhen Stock Exchange Stock Listing Rules' Article 9.8.1 (2) 'Providing guarantees to external parties in violation of the prescribed procedures and in serious circumstances', and Article 9.8.2 stipulates that 'Providing guarantees to external parties in violation of the prescribed procedures and in serious circumstances' refers to when the amount of guarantees provided by listed companies in violation of prescribed procedures (excluding subsidiaries within the scope of consolidation) exceeds 10 million yuan, or exceeds 5% of the latest audited net asset value of the listed company, and there is no feasible solution available, or even if a solution is proposed, it is not expected to be resolved within one month. The company's stock trading will be subject to 'other risk warnings'.

Regarding the aforementioned judgment, Nanfang Black Sesame filed an appeal in November 2023. The evening announcement stated that the Guangxi Higher People's Court recently made a final judgment, requiring the company to bear half of the compensation for Nanning Children's Hospital's inability to fully repay, but the compensation amount is limited to the value of 65.53 million yuan in equity. After Nanfang Black Sesame assumes the compensation responsibility, it has the right to seek recovery from Nanning Children's Hospital.

The Five Categories Group has promised Nanfang Black Sesame that all losses incurred by the company will be fully borne by the Five Categories Group. In order to ensure the full implementation of this commitment, the Five Categories Group will raise no less than 0.103 billion yuan in funds and deposit them into Nanfang Black Sesame's bank account by November 22 as performance guarantee deposit. They also promise to pay 65.53 million yuan as the performance guarantee deposit to Nanfang Black Sesame before November 22.

The announcement also mentioned that as of today, nanfang black sesame group has not yet paid the aforementioned performance bond to the company.