Independent directors’ information on the company’s external guarantee in 2021
Special instructions and independent opinions
In accordance with the company law of the people’s Republic of China, the securities law of the people’s Republic of China, the guidelines for the supervision of listed companies No. 8 – regulatory requirements for capital exchanges and external guarantees of listed companies, the stock listing rules of Shanghai Stock Exchange, the guidelines for the self regulatory supervision of listed companies of Shanghai Stock Exchange No. 1 – standardized operation and other relevant provisions, we are independent directors of China State Construction Engineering Corporation Limited(601668) (hereinafter referred to as the “company”), The company checked the external guarantee of the company in 2021 and issued the following special instructions and independent opinions: in 2021, the company and its wholly-owned and holding subsidiaries provided 89.934 billion yuan of new external guarantee (excluding small owner mortgage guarantee). Among them, 87.437 billion yuan of new external guarantees were provided to wholly-owned and holding subsidiaries, and 2.497 billion yuan of new external guarantees were provided to joint-stock companies. As of December 31, 2021, the balance of external guarantees (excluding mortgage guarantees for small owners) of the company and its wholly-owned and holding subsidiaries was 266333 billion yuan. Among them, the balance of guarantees provided to wholly-owned and holding subsidiaries was 254564 billion yuan, and the balance of guarantees provided to external units and joint-stock companies was 11.769 billion yuan. The company provided mortgage guarantee for small house owners, with a balance of 95.397 billion yuan.
In October 2021, after the deliberation and approval of the second extraordinary general meeting of shareholders in 2021, the company provided a $5.708 billion (about 27.1 billion yuan) joint guarantee for the performance liability of CSCEC Oceania under the design and construction contract of northeast trunk line project in Australia, and a $856 million (about 4.1 billion yuan) cross guarantee for the performance compensation liability of CSCEC Oceania within the consortium members, At present, the construction and performance of the project are progressing smoothly.
As of December 31, 2021, the company has not provided guarantees for controlling shareholders, actual controllers and their related parties, and there is no overdue guarantee.
To sum up, we believe that the external guarantee matters of the company in 2021 are the needs of normal production and operation, which is conducive to the business development of the company and its subsidiaries. The company abides by the relevant laws and regulations and the relevant provisions of the articles of association on external guarantee, strictly controls the guarantee risk, the relevant decision-making procedures are legal and compliant, there is no violation of external guarantee, and there is no damage to the interests of the company and shareholders.
China State Construction Engineering Corporation Limited(601668) independent director Xu Wenrong Jia Chen sun Chengming Li Ping April 15, 2002
