WUJIANG, CHINA / ACCESSWIRE / October 30, 2014 / China Commercial Credit, Inc. (NASDAQCM: CCCR), a microfinance company in Jiangsu Province, today announced that its wholly-owned subsidiary, Pride Financial Leasing (Suzhon) Co. Ltd., had executed its first two agreements to lease equipment to commercial entities.
The first agreement, for a term of two years, was signed on September 26 with Wujiang Xinmin Fiber Company, a textile business in Jiangsu Province. In the initial step of the agreement, Pride purchased certain polyester fiber production equipment from Wujiang Xinmin for a total of RMB15 million ($2.45 million). Wujiang Xinmin then leased back this same equipment, paying Pride a security deposit of RMB1.5 million ($245,000), a service fee of RMB300,000 ($49,000) and a first installment of RMB 266,000 ($43,470). Wujiang Xinmin shall subsequently make eight quarterly lease payments of RMB 2.1 million ($343,000) each, which, by the end of the agreement, will bring total payments to Pride to RMB17,366,000 (approximately $2.8 million).
Pride's second leasing customer, which signed on October 14 for a three-year term, is Wujiang Yongxiang Alcoholic Company, a plant alcohol business in Jiangsu Province. In the first stage of this agreement, Pride purchased a composite bacteria tank cooling system from Wujiang Yongxiang for about RMB15 million ($2.45 million). Wujiang Yongxiang then leased back this equipment, paying Pride a security deposit of RMB1.5 million ($245,000) and a service fee of RMB450,000 ($73,600). For the next six months, Yongxiang Alcoholic will make monthly lease payments of RMB 500,000 ($82,000) each, and thereafter and for the balance of the agreement pay RMB 490,000 (about $80,000) per month, equaling RMB18,150,000 (nearly $3.0 million) in total payments to Pride.
With these two leasing transactions, the net proceeds of $5.5 million from China Commercial Credit's May 2014 public offering have now been fully deployed in accordance with the offering's Prospectus.
"We view these first two contracts for Pride Leasing as among CCCR's most significant events of the past year," said China Commercial Credit CFO and Interim CEO Mr. Long (Leo) Yi. "While it is true that these agreements took longer than expected to come to fruition, we nevertheless see substantial indications that additional deals for Pride are within our reach."
Mr. Yi added that he believes equipment leasing continues to be a growing business sector of the Chinese economy, particularly in Jiangsu Province and surrounding regions.
Separately, Mr. Yi said that CCCR was continuing to supply NASDAQ authorities with all information and data requested in connection with the trading halt in the company's shares on September 11, 2014. "We thank our shareholders for their continued patience. We want them to know that the company's business operations are proceeding without interruption, and that we are doing our very best to complete the filing of our second and third quarter results as soon as possible."
About Pride Financial Leasing:
Established by CCCR on September 5, 2013, Pride is designed to offer leases on machinery and equipment, transportation vehicles and medical devices to municipal government agencies, hospitals and small-to-medium enterprises (SMEs) primarily in Jiangsu Province.
About China Commercial Credit:
China Commercial Credit (http://www.chinacommercialcredit.com), founded in 2008, provides business loans, financial leasing and loan guarantee services to some 240 small-to-medium enterprises (SMEs), farmers and individuals in China's Jiangsu Province. Due to recent legislation and banking reform in China, these SMEs, farmers and individuals - which historically had been excluded from borrowing funds from State-owned and commercial banks - are now able to borrow money at competitive rates from microfinance lenders.
Investors seeking additional information on CCCR or wishing to register for company Email Alerts may go to http://www.ir-site.com/china-commercial-credit/default.asp or the Asia IR/PR client page at http://asia-irpr.com/clients/cccr/.
Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of United States securities laws. You should not rely upon forward-looking statements as predictions of future events. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations. You should review the factors described in the section entitled "Risk Factors" in our prospectus filed with the SEC on May 9, 2014 and other documents we file from time to time with the SEC. We qualify all of our forward-looking statements by these cautionary statements.
CONTACTS:
Investor Relations
Jimmy Caplan
Asia IR/PR
512-329-9505
[email protected]
Media Contact
Rick Eisenberg
Asia IR/PR
212-496-6828
[email protected]
SOURCE: China Commercial Credit, Inc.