Hainan Development: Fulfilling Guarantee Responsibility for Subsidiary, Compensating Principal and Interest of 125 Million Yuan.

The development announcement from Hainan states that the company has provided financing guarantees for its holding subsidiary Haikong Sanxin. As of now, the company has signed and is still in existence of guarantee contracts totaling 184 million yuan, with a remaining principal of 61 million yuan. Due to Haikong Sanxin's inability to repay its maturing bank debts, the company recently fulfilled its joint guarantee obligation by paying a total of 125 million yuan in principal and interest to the relevant banks on its behalf. As of now, the company has fulfilled its guarantee obligation to repay bank debts for Haikong Sanxin totaling 247 million yuan. The company is taking measures to supplement its working capital and will pursue legal recovery. In addition, the court has accepted the company's application for bankruptcy and liquidation of Haikong Sanxin.