NEW YORK and SHENZHEN, China, Sept. 18 /Xinhua-PRNewswire/ -- China Finance, Inc. (OTC Bulletin Board: CHFI) (the “Company”), a provider of financial support and services for China’s large and rapidly expanding class of small and medium enterprises, today announced that the Company’s wholly-owned operating subsidiary, Shenzhen Hua Yin Guaranty and Investment Limited Liability Corporation (“SHY”) has agreed to guarantee a $2.15 million (RMB15 million) loan from China Construction Bank, Shenzhen Branch (“CCB”) to a wholly-owned subsidiary of China Digital Communication Group (OTC Bulletin Board: CHID), Shenzhen E’Jenie Science and Technology Company Limited (“E’Jenie”).
On August 27, 2008, SHY entered into a loan guarantee agreement with CCB and E’Jenie with respect to the E’Jenie loan, the proceeds of which will be used by E’Jenie to expand its business through acquisitions. The loan has a term of one year at an interest rate of 8.59%, with principal and interest payments to be made on a monthly basis. E’Jenie has paid SHY a fee of $110,000 in exchange for the loan guarantee. If E’Jenie pays the loan in accordance with its terms, SHY will have no payment obligation under the loan guarantee agreement. However, SHY and China Finance are subject to the risk that if E’Jenie defaults on the loan SHY will be responsible for any unpaid portion of the Loan.
Ms. Ann Yu, the Company’s CEO, stated: “China Finance is very pleased that we have been able to enter into this loan guarantee transaction. We are pleased that the company has been able to establish strong relationships with our clients and lending banks based on the company’s strong operations and credibility.”
About CHINA FINANCE, INC.
China Finance, Inc. provides financial support and services - primarily in the form of surety guarantees, loan guarantees, or short-term loans - to privately owned SMEs when they seek access to capital or to be acquired by a United States reporting company. China Finance provides its services through its wholly-owned indirect subsidiary, Shenzhen Hua Yin Guaranty and Investment Limited Liability Corporation (“SHY”), which is located in the financial district of Shenzhen, China.
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The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements relating to expected operating results and future performance, as well as future events and developments, are forward-looking statements and are not historical in nature. Generally, the words “looking forward”, “believe”, “expect”, “intend”, “estimate”, “anticipate”, “likely”, “project”, “may”, “will” and similar expressions identify forward-looking statements. The Company warns that any forward-looking statements in this release involve numerous risks and uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by any forward-looking statement. These risks and uncertainties include, but are not limited to, the risk that the value of our portfolio securities will decline resulting in a decline in the value of the Company’s stock, we might not achieve our anticipated development milestones, the market for our services will not grow as expected and we might not achieve our expectations. If these or other significant risks and uncertainties occur, or if our underlying assumptions prove inaccurate, our actual results could differ materially. While the Company is an operating company, the Company is registered as a “closed-end” investment company under the Investment Company Act of 1940, as amended, and is subject to the types of investment risks that effect investment companies. You are urged to consider the operating and investment objectives and strategies, expenses and history of the Company, along with all risks and uncertainties noted above, and to review the risk factors and financial information about the Company available in the Company’s registration statement on Form N-2, and the Company’s Annual and Semi-Annual Reports and other regulatory filings accessible on the SEC’s website at http://www.sec.gov. In light of the uncertainty inherent in forward-looking statements, you should not consider their inclusion to be a representation that such forward-looking matters will be achieved. Moreover, pursuant to the Private Securities Litigation Reform Act of 1995, such statements speak only as of the date they were made, and the company undertakes no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise. Past performance is no guarantee of future results, and like all investments, you may lose money on an investment in the Company’s stock.
