China Energine International (Holdings) Limited announced that pursuant to a loan agreement entered into between the Group as borrower and Aerospace Science and Technology Finance Co. Ltd. ("ASTF"), a fellow subsidiary of China Academy of Launch Vehicle Technology ("CALT"), as lender, with the loan amounts of RMB 140 million (with guarantee from CALT), the Group is required to repay such loans on 12 September 2020. However, the Group has failed to repay the loan on 12 September 2020 and this constitutes an event of default under the loan agreements (the "Breach"). As CALT has not completed the decision-making procedures for continuous provision of guarantee before the date on which such loan falls due, therefore, it fails to sign the guarantee agreement for renewing the loan with ASTF in relation to the Group's due loan, and the Group fails to complete the repayment and the signing of the contract of renewing the loan. The Group is still on further negotiation with CALT in relation to such loan. The Group has yet to obtain a waiver from ASTF in respect of the Breach and such that ASTF may demand the immediate repayment. As at the date of this announcement, ASTF has not made any demand for immediate repayment of the loans. Apart from the loan agreements of RMB 140 million, there are also loans from ASTF amounted to aggregate amount of approximately RMB 80 million, RMB 35 million, RMB 187 million, RMB 146 million, RMB 300 million and RMB 30 million will be fall due on/in 20 September 2020, October 2020, November 2020, December 2020, January 2021 and February 2021 respectively. In order to meet the repayment obligations, the Company has been discussion with ASTF as to the repayment schedule of the loans. The Company will continue to monitor its financial position and will inform and update its shareholders and other investors of any material development in relation to the above by way of announcement as and when appropriate.