In accordance with the agreement, the joint venture partners agreed to create the joint venture with a total investment of RMB330 million, of which a total of RMB110 million would constitute the share capital. The share capital of RMB110 million would be financed 50% by the two partners of the joint venture and 50% by company A. The share capital would be provided by each joint venture concerned within four months of receiving the joint venture`s commercial licence. The agreement stated that any surplus in excess of the initial capital contribution would be financed by bank loans or participatory loans up to a total investment amount of RMB330 million. The Company is pleased to announce that JV Partner A (a 90% subsidiary of the company) has entered into the share transfer and joint venture agreement for the acquisition of the A Sale Share tranche and the creation of a joint venture for the New Land real estate development project on 12 August 2020 on the basis of the main conditions set out in this notice. The amount to be repaid is subject to the agreement, the information provided by Company A, according to which it was only obliged to pay its respective share in the capital contribution of the Community company. For example, Company A estimated that its initial capital premium, worth 50% of RMB`s 110 million, should be used to calculate the „4 tests“. „share transfer contract,“ the August 12, 2020 share transfer agreement between the joint venture`s partners for the sale and purchase of Total Sales Shares; All of Company A`s underlying liabilities and commitment to the relevant joint venture agreement should be used to determine the extent of the transaction. Given that the joint venture agreement provided for a total amount of investment and that shareholder loans were considered one of the means of financing this total amount of investment, it was clear that Company A was committed to continuing to finance the joint venture if circumstances required it.
Company A has entered into a Sino-foreign participation agreement with two-thirds independent (i.e. joint venture partners) for the creation of a joint venture. The joint venture should be created for the purpose of reorganizing a residential area on the continent of the PRC, and would last approximately three years and begin once the parties involved in the joint venture have brought in registered capital.