SHENZHEN, China, Sept. 14, 2021 /PRNewswire/ -- Nam Tai
Property Inc. ("Nam Tai" or the
"Company") (NYSE: NTP) is pleased to announce that Nam Tai
Investment (Shenzhen) Co., Ltd.
("Nam Tai Investment"), a wholly owned indirect subsidiary of the
Company, has entered into a loan agreement (the "Loan Agreement")
with the Shenzhen Branch of Bank
of Guangzhou Co., Ltd (the "Lender"), a regional commercial bank in
the PRC. Pursuant to the Loan Agreement, the Lender has agreed to
grant to Nam Tai Investment a loan facility of up to RMB1.06 billion (approximately US$164 million) with a five-year term (the "Loan
Facility"). The Loan Facility bears an annual floating interest
rate which is the aggregate of the loan prime rate applicable to
RMB term loans with a tenor of one year and 265 basis point per
annum. As at the date of this announcement, Nam Tai Investment has
drawndown an amount equal to approximately RMB 575 million (approximately US$89 million) under the Loan Facility.
As security for the Nam Tai Investment's obligations under the
Loan Agreement, (a) Nam Tai Group Limited ("NTGL"), a wholly owned
subsidiary of the Company and the sole shareholder of Nam Tai
Investment, has pledged all of its shares in Nam Tai Investment in
favour of the Lender; (b) each of NTGL and Zastron Electronic
(Shenzhen) Co., Ltd., a wholly
owned subsidiary of Nam Tai Investment, has provided guarantee in
favor of the Lender; (c) Nam Tai Investment has pledged all
receivables relating to Nam Tai Technology Center (the "Project")
in favor of the Lender; and (d) Nam Tai Investment has granted a
property mortgage over the land upon which the Project is situated
in favor of the Lender.
The Company has faced challenges operating its business as (1)
demand letters were received from all of its existing lenders,
namely Shenzhen Branch of Bank of
China Limited, Shenzhen Branch of
Bank of Beijing Co., Ltd., Zhuhai Branch of Xiamen International
Co., Ltd., and Shenzhen Branch of Industrial Bank Co., Ltd.,
demanding immediate repayment of their respective outstanding loans
in full given the significant uncertainty in respect of its share
ownership and the potential changes in the Board of Directors of
the Company, and (2) lawsuits were filed by the Company's suppliers
in the PRC in relation to various alleged outstanding payments
whereby the respective PRC courts have issued rulings to freeze
bank accounts of the Company's relevant subsidiaries restricting
remittance therefrom. In light of such liquidity issues, the
Company's operation has been disrupted and it has been unable to
meet the progress payment of its suppliers. Further, there are
potential threats that the existing lenders would take further
legal actions against the Company and/or its subsidiaries regarding
the defaults in respect of their respective outstanding loans.
Despite such unfavorable environment, the Company has successfully
secured the Loan Facility and demonstrated its continued efforts to
act in the best interests of its shareholders. In view of the Loan
Facility obtained by Nam Tai Investment, the Company has repaid the
amount due to the Shenzhen Branch
of Bank of Beijing Co., Ltd and Shenzhen Branch of Industrial Bank Co., Ltd.
in full, and it will continue to address its liquidity issues
progressively. As such, the Company believes it will be in a
position to gradually restore the normal operations of the Company
and its subsidiaries, settle the disputes with its suppliers as
appropriate, and cure the remaining defaults with its existing
lenders. The Company will from time to time make announcement as
appropriate to update its shareholders.
FORWARD-LOOKING STATEMENT AND FACTORS THAT COULD CAUSE OUR
SHARE PRICE TO DECLINE
Certain statements included in this announcement, other than
statements of historical fact, are forward-looking statements.
Forward-looking statements generally can be identified by the use
of forward-looking terminology such as "may", "might", "can",
"could", "will", "would", "anticipate", "believe", "continue",
"estimate", "expect", "forecast", "intend", "plan", "seek", or
"timetable". These forward-looking statements, which are subject to
risks, uncertainties, and assumptions, may include projections of
our future financial performance based on our growth strategies and
anticipated trends in our business and the industry in which we
operate. These statements are only predictions based on our current
expectations about future events. There are several factors, many
beyond our control, which could cause results to differ materially
from our expectation. These risk factors are described in our
Annual Report on Form 20-F and in our Current Reports filed on Form
6-K from time to time and are incorporated herein by reference. Any
of these factors could, by itself, or together with one or more
other factors, adversely affect our business, results of operations
or financial condition. There may also be other factors currently
unknown to us, or have not been described by us, that could cause
our results to differ from our expectations. Although we believe
the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity,
performance, or achievements. You should not rely upon
forward-looking statements as predictions of future events. These
forward-looking statements apply only as of the date of this
announcement; as such, they should not be unduly relied upon as
circumstances change. Except as required by law, we are not
obligated, and we undertake no obligation, to release publicly any
revisions to these forward-looking statements that might reflect
events or circumstance occurring after the date of this press
release or those that might reflect the occurrence of unanticipated
events.
ABOUT NAM TAI PROPERTY INC.
We are a real estate developer and operator, mainly conducting
business in Mainland China. Our main land resources are located in
the Guangdong-Hong Kong-Macao
Greater Bay Area ("Greater Bay Area") and Wuxi, China, of which the three plots in
Shenzhen will be developed into
Nam Tai Inno Park, Nam Tai Technology Center and Nam Tai Inno Valley. We plan to build these
technology parks into landmark parks in the region and provide
high-quality industrial offices, industrial service spaces and
supporting dormitories to the tenants. Based on the experience of
developing and operating technology parks and an industrial
relationship network accumulated over the past 40 years, we have
also exported the operation model of technology parks to other
industrial properties. Through an asset-light model, we have leased
industrial properties for repositioning and business invitation. We
will also expand the commercial and residential property business
in China as an auxiliary
development strategy of the Company. As the growth prospects of
China maintain, we shall seize
development opportunities in the Greater Bay Area and other first-
and second-tier cities in China,
and continue to strengthen and expand the business of industrial
real estate, and commercial and residential properties. Nam Tai
Property Inc. is a corporation registered in the British Virgin Islands and listed on the New
York Stock Exchange (Symbol: "NTP").
Please refer to our corporate website (https://www.namtai.com/)
or the SEC website (www.sec.gov) for our press releases and
financial statements.
CONTACTS
Ira Gorsky, Edelman
E-mail: Ira.gorsky@edelman.com
Cell: 732-740-5872
Media and Investor Relations, Nam Tai Property Inc.
E-mail: ir@namtai.com.cn
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SOURCE Nam Tai Property Inc.