Guangdong Construction Engineering Group Co., Ltd. Announcement on Cancelling Guarantee for Subsidiary's China Construction Bank Loan
The Company and the Board of Directors guarantee that the information disclosed is true, accurate, and complete, and contains no false records, misleading statements, or material omissions.
Guangdong Construction Engineering Group Co., Ltd. (hereinafter referred to as the "Company") subsidiary Xidongting Yue Water Conservancy and Hydropower Investment and Operation Co., Ltd. (hereinafter referred to as "Xidongting Yue Water Conservancy") is the project company for the Xidongting Sand River Water System Comprehensive Management PPP Project (hereinafter referred to as the "PPP Project") in Changde City. It is mainly responsible for the investment and construction of projects such as riverbank reinforcement, bridges, and landscaping, as well as the daily operation and maintenance of river channels, riverbanks, and bridges. The revenue source is government availability payments and operation and maintenance service fees.
As the payment period has been extended from 8 years to 15 years, to meet the actual operational needs of the PPP Project and optimize the financing structure of Xidongting Yue Water Conservancy, and to ensure the sustained and stable operation of the PPP Project, Xidongting Yue Water Conservancy plans to repay the existing loan from China Construction Bank Co., Ltd. (hereinafter referred to as "China Construction Bank") through loan replacement. Based on the above situation, the Company plans to cancel the guarantee provided for the loan from China Construction Bank to Xidongting Yue Water Conservancy, with a cancelled guarantee amount of 100.7526 million yuan.