Chinese
Basic Criteria for Target Companies

1.The project must comply with national industrial policies and local development plans.

2.The main enterprise and project information are complete, and must be true, legal, complete and valid. 

3.The company is currently operating normally, and its effective assets and equity can be normally handled for pledge and mortgage procedures.

4.The equity of the financing entity must be pledged, and valid assets must be mortgaged (pledge and loan can be flexible).

5.The controlling shareholder (actual controller) of the financing entity shall bear unlimited joint and several liability guarantee (if the shareholder is an enterprise, it shall bear joint 

   and several liability guarantee).

6.Annual interest rate: 7–12% (depending on the project, its location, and the investment period).

7.Investment period: 1 to 5 years (depending on the specific circumstances of the project).

8.Investment funds must be used for designated purposes (the enterprise must provide a detailed funding plan, and the investor must supervise the use of funds throughout and

   manage post-investment activities).

9.The enterprise needs to actively cooperate with the relevant work of the investors.

10.The enterprise must strictly adhere to business secrets, and regardless of whether the cooperation between both parties succeeds or fails, the enterprise must strictly fulfil its

   confidentiality obligations.

11.During the investment cooperation process, the investing party will not charge the enterprise any fees.