| Share shortened form: G SINOCHEM Securities Code: 600500 No.: 2005-032
The Announcement about the External Guaranty of SINOCHEM International Corporation
Specific Brief
This company and all the members of the Board ensure the truth, accuracy and integrity of the announcement, and should bear the joint and several obligations to any falsely recorded announcement, misguiding presentation or serious omitted
Brief on the major contents
Name of vouchee: Hainan SINOCHEM Shipping Co., Ltd (a subsidiary held by this company )
Guaranteed amount this time: RMB 79.81 million, a total of guaranteed amount: RMB 7.981 million.
Is there any counter-guaranty this time: N/A
The total guaranteed amount after this guarantee: RMB169.81 million
The total of overdue external guaranteed amount: Nil
I. The summary of the guaranty
The 18th Meeting of the 3rd Session Board of Directors of this company, held on Nov. 13, reviewed and approved the External Guaranty Plan to provide a total amount of RMB 79.81 million as short term credit guaranty for China Bank in order to hire solely the ships for Hainan SINOCHEM Shipping Co., Ltd C a subsidiary of this company.
The foregoing guaranty would be valid after it has been reviewed and approved by the board of directors, announced and an agreement has been signed. The total amount of the external guaranty of this company is up to RMB169.81 million after the guaranty.
II. The basic information of warrantor
Hainan SINOCHEM Shipping Co., Ltd (hereafter called "SINOCHEM Shipping") is a subsidiary which 95% shares are held by this company. Its registered office address is located in Yangpu Hainan. Its legal representative is Mr. Li Chao. It specializes mainly in transporting the products, liquid chemicals and oil product along the international line; transporting them along the coast of mainland China, the middle and downward reaches of Yangtze River as well as the lines of Pearl River Delta; and other business such as shipping trade, shipping service management, shipping management, information consultation as maritime affairs and sea transportation and storage. The chief financial indexes of this company are as following:
(In RMB Yuan )
|
|
Sept. 2005 |
2004 |
|
Total assets |
771,724,240.23 |
402,908,675.37 |
|
Total liabilities |
366,071,219.78 |
31,056,270.05 |
|
Net assets |
404,753,884.30 |
371,852,405.32 |
|
Incomes from the main business |
130,132,289.82 |
114,731,513.14 |
|
Net profits |
36,355,079.22 |
15,259,921.75 |
III. The main contents of the guaranty agreement
1.Guaranty Mode: credit guaranty, assume responsibility related refunding.
2.Guaranty period: 1 year max
3.Guaranteed amount: total RMB79.81million.
4.Counter-guaranty: Nil
IV. The opinions of the board of directors
The board of directors of the company believes that it is practical measure for developing the logistic business in the company to enlarge further its marker shares of shipping the liquid chemicals in China and to configure the capacity of the shipping flexibly by hiring the ships solely upon the existing transportation capacity, which is beneficial to increase the profits of this company and improve the values of the shareholders. The board of directors agreed to provide the guaranty to the SINOCHEM Shipping. As the SINOCHEM is the subsidiary absolutely held by this company, the counter guaranty is unnecessary.
V. Total amount of the exterior guaranty and the amount of the overdue guaranty
The total amount of the external guaranty of this company is up to RMB169.81 million after the guaranty and there is no overdue guaranty.
VI. Catalog of traceable documents:
1. The Decision made in the 18th Meeting of the 3rd Session Board of Directors of this company;
2. The guaranty agreement signed with Bank of China
The Board of Directors in SINOCHEM International Corporation
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