CITIC Trust responds to the doubt that the funds of Founder Securities have been misappropriated: the use of funds conforms to the agreement

CITICTrustrespondstothedoubtthatthefundsofFounderSecuritieshavebeenmisappropriated:theuseoffundsconformstotheagreement
FounderSecurities2.300millionpurchasetrustfundswere”appropriated”anotherprotagonistinthedoubtcloudappeared.IntheearlyhoursofMarch12,CITICTrustissuedastatementsayingthatthecompanyhadnoticedtheannouncementissuedbyFounderSecuritiesonMarch10,coveringthecompany’sentrustedmanagementof”CITIC?”OceanHongshengInvestmentCollectiveFundTrustPlan”,afterinvestigation,FounderSecuritiesDepartmentmadeanindependentdecisiontotransferthesharesofthetrustplan,andtheuseoffundsinthetrustplanconformstotheprovisionsofthetrustcontract.Atpresent,thecompanyhasentrustedalawfirmtohandlerelatedmatters.OntheeveningofMarch10,FounderSecuritiesannouncedthatthecompanysubscribedtoCITICTrustinNovemberlastyear.”OceanHongshengInvestmentCollectiveFundTrustPlan”2.300millionUSdollars,thisbudgetWuhanGuiyuansiprojectBpackagelanddevelopmentandconstructionandotherfundsusedinthetrustcontract,butthecompanyrecentlycashed,thisfundwasusedbyCITICTrusttoallloanstoFounderGroup.Accordingtoreports,FounderGroupisthelargestshareholderofFounderSecurities,holding27shares.75%.FounderSecuritiessaidthatafterpurchasingthetrustplan,CITICTrusthasnotprovidedanyothermaterialsexceptthebusinesslicenseandcorporateidentitycardinformation.TheeastwindowincidentoccurredinFebruarythisyear,andthecompanydidnotreceivethefirstphaseofthetrustincome550accordingtothelatesttimeagreedinthecontract.730,000yuan.AfterinquiringwithCITICTrustandFounderGroup,itwasdiscoveredthatthefundsweredivertedtolendtoFounderGroup.ThereasonisthattheloansreleasedbyCITICTrusttotheenterprisesofFounderGroupinearly2019havenotbeenrestartedasscheduled.CITICTrustandtheenterprisehavedetermineda”borrowthenewandreturntheold”plan,andthenFounderGroup,whichistheguarantorofthefinancing,receivedCITICTrust.A300millionUSdollarloanisusedtorepaypartofthedebttoCITICTrustinadvancefortheirrespectivecompanies.EditorXuChaoproofreadingLiuYue