Franshion Properties successfully launched the trust wealth management financing business

On June 15, 2009, Franshion Properties received the Notice on the Credit Assignment and the Notice on the Adjustment of Interest from FOTIC. The creditor of Franshion Properties was changed from SINOCHEM FINANCE CO., LTD to FOTIC and the loan interest was adjusted from 10% downward six-month benchmark interest rate to 20% downward, i.e. 4.374% to 3.888%. This means the trust wealth management financing business under the joint design of Franshion Properties, SINOCHEM FINANCE CO., LTD and FOTIC was successfully launched. On the basis of existing withdrawal of RMB200 million loan amount, it is expected Franshion Properties can save the financial cost of around RMB1 million each year.
The trust wealth management financing package is financially innovative through repeated discussions and common endeavors of three parties and based on the good credit background of SINOCHEM FINANCE CO., LTD, the flexible operational mode of FOTIC and the actual funding requirement of Franshion Properties. As a specific representation of our pursuit of outstanding fund management, the package effectively reduces financing cost of Franshion Properties, broadens financing channel, gives a powerful play to the synergy effect of member companies of Sinochem Group and maximizes the collective interest of Franshion Properties and the shareholders.