1. The source of project loan repayment funds mainly depends on the following aspects: 1. The operating income of the project itself: If the project is a commercial project, Then it will be possible to generate certain operating income, which can be used to repay the loan principal and interest. 2. Guarantees from project investors: If the project involves investors, shareholders, etc., they may provide certain guarantees at the beginning of project construction, such as cash guarantees, mortgage guarantees, etc. These guarantees can serve as a source of loan repayment if the project is at risk. 3. Additional investment from investors: If more business opportunities and potential income are discovered during project construction, the investor may inject funds again to increase project income and use it to repay the loan principal and interest. 4. Other sources of funds from individuals or enterprises: If during the project construction process, individuals or enterprises have other sources of funds, such as property sales, deposits, etc., these funds can also be used to repay project loans.

II. Project Financing Business Guidelines

Article 1 is to promote the healthy development of the project financing business of banking financial institutions and effectively manage project financing risks, in accordance with the "People's The Banking Supervision and Administration Law of the People's Republic of China, the Commercial Bank Law of the People's Republic of China, the Interim Measures for the Management of Fixed Asset Loans and other relevant laws and regulations formulate these guidelines.

Article 2 These Guidelines shall apply to the project financing business conducted by the People's Government of China and domestic banking financial institutions (hereinafter referred to as lenders) established with the approval of the banking regulatory agency of the State Council.

Article 3 Project financing as mentioned in these Guidelines refers to loans that meet the following characteristics:

(1) The purpose of the loan is usually for the construction of one or a group of large-scale production equipment, Infrastructure, real estate projects or other projects, including refinancing of projects under construction or already built;

(2) The borrower is usually specially formed to build, operate or finance the project Enterprises and institutions, including existing enterprises and institutions that are mainly engaged in the construction, operation or financing of the project;

(3) The source of repayment funds mainly relies on the sales revenue, subsidy income or other income generated by the project, There are generally no other sources of repayment.

Article 4 Lenders engaged in project financing business shall have the ability to identify and manage risks for the projects they engage in, be equipped with professionals required for business development, and establish complete operating procedures and risk management mechanisms.

The lender may, as needed, entrust or require the borrower to entrust an independent intermediary with relevant qualifications to provide professional advice or services in legal, taxation, insurance, technology, environmental protection and supervision for the project.

Article 5 The projects for which lenders provide project financing shall comply with relevant national industry, land, environmental protection and investment management policies.

Article 6 Lenders engaged in project financing business shall fully identify and evaluate the construction period risks and operation period risks existing in financing projects, including policy risks, financing risks, completion risks, product market risks, and overspending. risks, raw material risks, operational risks, exchange rate risks, environmental risks and other related risks.

Article 7 When engaging in project financing business, lenders shall take debt solvency analysis as the core, focus on assessing project risks from aspects such as project technical feasibility, financial feasibility and repayment source reliability, and fully consider The impact of policy changes, market fluctuations and other uncertain factors on the project will be carefully predicted, and the future income and cash flow of the project will be carefully predicted.

Article 8 Lenders shall reasonably determine the loan amount in accordance with the relevant national regulations on the capital system for fixed asset investment projects, comprehensively considering the project risk level and their own risk tolerance and other factors.

Article 9 Lenders shall reasonably determine the loan term and repayment plan based on factors such as the project’s predicted cash flow and investment payback period.

Article 10 Lenders shall reasonably determine loan interest rates in accordance with the relevant provisions of the People's Bank of China on interest rate management, the principle of risk-return matching, comprehensive consideration of project risks, risk mitigation measures and other factors.

Lenders can adopt different loan interest rates based on the risk characteristics and levels of project financing at different stages.

Article 11 The lender shall require the project assets and/or project expected income and other rights that meet the mortgage conditions to be used as guarantee for the loan, and may, if necessary, use the project assets held by the project sponsor to The company's equity creates a pledge guarantee for the loan.

The lender should request to be the first claimant for insurance claims from the commercial insurance insured by the project, or take other measures to effectively control the rights and interests of insurance claims.

Article 12 Lenders shall take measures to effectively reduce and disperse various risks of financing projects during the construction and operation periods.

Lenders should minimize risks during the construction period by requiring the borrower or, through the borrower, requiring project-related parties to sign a general contracting contract, purchase commercial insurance, establish a completion bond, provide completion guarantees and performance bonds, etc. .

Lenders can effectively diversify operating period risks by requiring borrowers to sign long-term supply and sales contracts, using financial derivatives, or sponsors providing funding gap guarantees.

Article 13 Lenders can provide financial advisory services for projects, design comprehensive financial service plans for projects, and use a combination of various financing tools to broaden project fund source channels and effectively disperse risks.

Article 14 Lenders shall, in accordance with the relevant provisions of the "Interim Measures for the Administration of Fixed Asset Loans", properly design account management, loan fund payment, borrower commitments, financial indicator control, major defaults and other project financing Contract terms, promote normal project construction and operation, and effectively control project financing risks.

Article 15 The lender shall release loan funds according to the actual progress and capital needs of the project and in accordance with the conditions agreed in the contract. Before the loan is issued, the lender should confirm that the project capital in the same proportion as the loan to be issued is in full and used in conjunction with the loan.

Article 16 The lender shall manage and control the payment of loan funds in accordance with the relevant provisions of the "Interim Measures for the Administration of Fixed Asset Loans" on loan issuance and payment, and may cooperate with the borrower on the loan when necessary. A dedicated loan disbursement account is stipulated in the contract.

If the lender’s entrusted payment method is adopted, the lender may require the borrower, independent intermediary agency and contractor to jointly inspect the equipment construction or project construction progress when necessary, and make a The conditions stipulated in the contract must be signed together with the visa form to make the loan payment.

Article 17 The lender shall agree with the borrower on a special project income account, and require all project income to enter the agreed account and be paid externally in accordance with the conditions and methods agreed in advance.

The lender shall dynamically monitor the project income account. When there is an abnormality in the flow of funds in the account, the lender shall promptly identify the cause and take corresponding measures.

Article 18 During the duration of the loan, the lender shall continue to monitor the construction and operation of the project, regularly evaluate project risks based on factors such as loan guarantees, market environment, macroeconomic changes, etc., and establish Loan quality monitoring system and risk warning system. If situations arise that may affect loan security, corresponding measures shall be taken promptly.

Article 19 If multiple banking financial institutions participate in the financing of the same project, in principle, syndicated loans should be used.

Article 20 Loans issued to cultural creativity, new technology development and other projects that meet the characteristics of project financing shall be implemented with reference to these guidelines.

Article 21 The China Banking Regulatory Commission is responsible for the interpretation of these Guidelines.

Article 22 These Guidelines shall come into effect three months from the date of issuance.

3. The source of repayment funds for project financing loans mainly depends on ().

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