1. Basic Situation of Company's Illegal External Guarantees and Non-Operational Fund Occupation
Hunan Qianshan Pharmaceutical Machinery Co., Ltd. (hereinafter referred to as "the Company") published an announcement on March 20, 2018, regarding external guarantees and another on July 6, 2018, disclosing unauthorized external guarantees and financing for related natural persons. On May 31, 2018, the Company announced the non-operational fund occupation by related parties. On October 10, 2018, the Company disclosed further illegal external guarantees, where the Company's machinery was sold to the guaranteed party, which borrowed from creditors to pay the Company. The Company undertook unconditional repurchase responsibilities for the lender.
The specific circumstances of the external guarantees and non-operational fund occupation are as follows:
- The Company provided guarantees for loans of related enterprises: