RONGAN PROPERTY(SZ:000517) Zhong Guo Zheng Quan Bao - Zhong Zheng Wang·2025-10-19 06:16Core Viewpoint - The company is providing financial assistance to its joint venture project companies to support real estate development and operational expenses, which is within the authorized limits set by the board and shareholders [3][4][19]. Financial Assistance Overview - The company’s subsidiary, Ningbo Kaixin Enterprise Management Co., Ltd., will provide up to 250 million RMB to Hangzhou Binxin Real Estate Development Co., Ltd. for project development and operational costs, interest-free [1][15]. - The company’s wholly-owned subsidiary, Taizhou Rongfang Construction Real Estate Development Co., Ltd., will provide up to 225 million RMB to Taizhou Luqiao Fangyuan Rong'an Real Estate Co., Ltd. for similar purposes, also interest-free [2][16]. - Another subsidiary, Ningbo Kaizhe Enterprise Management Co., Ltd., will provide up to 100 million RMB to Taizhou Fanghua Real Estate Development Co., Ltd. for project development and operational costs, interest-free [2][17]. Approval and Authorization - The board of directors and the first extraordinary general meeting of shareholders in 2025 approved the financial assistance proposals, with a total authorized amount not exceeding 50% of the company's latest audited net assets, which is 2.909 billion RMB [3][4]. - The board is authorized to manage the financial assistance within the approved limits, with specific amounts for individual projects capped at 10% of the latest audited net assets, or 582 million RMB [3][4]. Financial Assistance Contracts - The financial assistance agreements specify that the funds will be used for real estate project development and operational expenses, with repayment contingent on the project companies having surplus funds after covering development costs [15][16][17]. Project Company Profiles - Hangzhou Binxin Real Estate Development Co., Ltd. has total assets of 1.161 billion RMB and a net asset of 1.111 billion RMB as of September 30, 2025, with no revenue reported for the first nine months of 2025 [6][8]. - Taizhou Luqiao Fangyuan Rong'an Real Estate Co., Ltd. has total assets of 1.332 billion RMB and a net asset of 32.716 million RMB, with revenue of 252 million RMB for the first nine months of 2025 [9][10]. - Taizhou Fanghua Real Estate Development Co., Ltd. has total assets of 181.486 million RMB but a negative net asset of 50.74 thousand RMB, with no revenue reported for the first nine months of 2025 [12][13]. Risk Management Measures - The company will monitor the project companies' operations and financial conditions closely, ensuring that significant decisions are made collectively by the boards or shareholders of the project companies [18][19]. - The company has not reported any overdue financial assistance that has not been recovered [20].