| Shenzhen-listed Sainty Marine will offer a guarantee for a combined fund of CNY145 million (USD23 million) for Sainty Shipbuilding (Yangzhou), its major shipbuilding subsidiary based in Yangzhou. Sainty Shipbuilding (Yangzhou) is planning to sell and lease back its production facilities from AVIC Leasing with a total rent of CNY85 million, a stock filing of Sainty Marine said on 6 March. Also, Sainty Shipbuilding (Yangzhou) will borrow CNY60 million in loans from Jiangsu Yizheng Rural Commercial Bank for its business development. Sainty Marine has already agreed to guarantee another CNY40 million in rents for Sainty Shipbuilding (Yangzhou), according to a stock filing published in December 2014. In 2014, Sainty Shipbuilding (Yangzhou) posted CNY12 million in profits on revenues of CNY1.4 billion. In addition, Sainty Marine is still rushing to raise funds as much as CNY3.6 billion by the end of 2015 from its parent company, Chinese banks, and financial leasing companies to replenish its working capital. Sainty Marine, along with its shipbuilding subsidiaries, planned to apply for loans of CNY1 billion in 2014 and CNY1.5 billion in 2015 from its parent company Jiangsu Guoxin Investment Group, the company said in December 2014. The loans will be used to replenish the company’s working capital, it added. |