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					Case   Key Risks                            Base Case Scenario           FYT Actions/Initiatives               Client's    FYT's        FYT's       Value-A
                                                                                                               Purchase    Recovery     Value-Add   dded
                                                                                                               Price                    ed          Ratio

2      1. The borrower held 45% equity      The client would receive     With its accurate market              7,174,184   11,000,000   3,825,816   53.33%
       in a JV, which has been              only RMB2.85 mm on a         intelligence and strong local
       foreclosed by other competitive      pro rata basis based upon    connections, FYT responded fast
       creditors;                           the borrower's total         enough to successfully foreclosed
       2. At the meantime of FYT's          liabilities in case of the   the borrower's equity in the JV and
       negotiation with the borrower, the   borrower's bankruptcy.       realize a satisfactory recovery
       borrower's parent company                                         during the interim period of one
       planned to initiate the borrower's                                week between the expiry of other
       bankruptcy and take back the                                      creditors' foreclosure and the
       equity by itself;                                                 bankruptcy of the borrower.
       3. The borrower was already
       listed in the bankruptcy scheme
       approved by government and the
       bankruptcy process would be
       started soon.


3      Closing documents from the           The client's recovery        With its accurate market              667,562     3,000,000    2,332,438   349.40%
       seller indicated that the borrower   would be very low as         intelligence and strong local
       did not have any valuable asset.     there is no value in the     connections, FYT had access to an
                                            borrower.                    internal document from the
                                                                         borrower's parent company.
                                                                         According to the document, a
                                                                         piece of land would be refunded to
                                                                         the borrower from a JV which the
                                                                         borrower had set up before. FYT
                                                                         successfully foreclosed the land
                                                                         one day before the borrower's sale
                                                                         of the land.
Case   Key Risks                            Base Case Scenario           FYT Actions/Initiatives               Client's    FYT's        FYT's       Value-A
                                                                                                               Purchase    Recovery     Value-Add   dded
                                                                                                               Price                    ed          Ratio

4      The borrower's parent company        The client would receive     With its accurate market              2,205,625   11,000,000   8,794,375   398.72%
       planned to initiate the borrower's   only RMB0.92mm on a          intelligence and strong local
       bankruptcy.                          pro rata basis based upon    connections, FYT responded fast
                                            the borrower's total         enough to identify a piece of land
                                            liabilities in case of the   of the borrower which has been
                                            borrower's bankruptcy.       approved to be used for residential
                                                                         development. FYT initiated the
                                                                         auction of the land to the highest
                                                                         bidder and realize a satisfactory
                                                                         recovery before the bankruptcy of
                                                                         the borrower.
Case   Key Risks                               Base Case Scenario           FYT Actions/Initiatives                Client's    FYT's        FYT's        Value-A
                                                                                                                   Purchase    Recovery     Value-Add    dded
                                                                                                                   Price                    ed           Ratio

5      Closing documents from the              The client's mortgage        Through its strong local               9,452,680
       seller indicated that the mortgage      rights with regard to the    connections, FYT successfully
       contract with regard to the             collaterals will not be      foreclosed the property before
       collateral is missing although          supported by the court       other creditors renewed their
       there is an other right certificate.    without a relevant           foreclosure on the property and
       Without the presentation of             mortgage contract.           found out the mortgage contract to
       mortgage contract, our client's         Consequently, the client's   support its client's mortgage rights
       rights with regard to the collateral    recovery could be very       with regard to the collateral.
       will not be supported by the court      low.
       while the collaterals have been
       foreclosed by other creditors.


6      The beneficiary in the other right      The client's mortgage        FYT successfully foreclosed the        8,664,957   35,153,935   17,036,298   94.03%
       certificate is different from that in   interests would not be       borrower's properties before other
       the mortgage contract available.        supported by the court       creditors apply for court
       However, no documents showed            while other creditors had    enforcement against such
       that the mortgage contract had          won litigation against the   properties; with new evidences,
       been extended; The different            borrower in legal balance    FYT eventually persuaded the
       beneficiaries represented two           of RMB136 mm. This           court to rule that the mortgage
       different bank branches.                would significantly affect   shall be legally valid.
                                               the client's recovery.
Case   Key Risks                             Base Case Scenario             FYT Actions/Initiatives                Client's     FYT's        FYT's       Value-A
                                                                                                                   Purchase     Recovery     Value-Add   dded
                                                                                                                   Price                     ed          Ratio

7      Closing documents indicated that      The client's recovery          With its accurate market               80           7,433,859    7,433,779   9292223.75

       the borrower has not valuable         would be very low              intelligence and local connections,                                          %

       assets.                               because the borrower had       FYT successfully identified and
                                             no asset.                      auctioned the borrower’s assets
                                                                            including land of 35,671.32 m2 in
                                                                            site area and buildings of 400 m2
                                                                            in GFA and loans of
                                                                            RMB 6, 894,831.3 owed by other
                                                                            parties to the borrower.


8      1. Both the borrower and the          1. Without valid court         1. FYT actively communicated           12,276,681   15,117,000   2,840,319   23.14%
       mortgagor have gone bankrupt. A       judgment confirming the        with the liquidation committee and
       liquidation committee has taken       loans of the client, the       timely registered the client's
       over all the fixed assets of the      client's rights against both   creditor's rights and mortgage
       borrower and the mortgagor.           the borrower and the           rights by showing all loan and
       2. Both the borrower and the          mortgagor may not be           mortgage files to the liquidation
       mortgagor still owed hundreds of      accepted by the                committee without any effective
       millions RMB to tens other            liquidation committee.         court judgment.
       creditors.                                                           2. FYT actively communicated
       3. The client has not yet initiated                                  with a court and obtained the
       any litigation while other                                           court's confirmation of the client's
       creditors have already won their                                     loan and mortgage rights by way
       litigations pending enforcement.                                     of a simpler document rather than
                                                                            a formal court judgment.
                                                                            3. Compete with tens other
                                                                            creditors and safeguard the client's
                                                                            legal rights.
Case   Key Risks                            Base Case Scenario             FYT Actions/Initiatives              Client's    FYT's        FYT's       Value-A
                                                                                                                Purchase    Recovery     Value-Add   dded
                                                                                                                Price                    ed          Ratio

9      1. The borrower was a private        In case of court               FYT proposed a settlement plan to    61,812      700,000      638,188     1032.47%

       company restructured from a          enforcement against the        the borrower that the borrower
       former SOE.                          collaterals, the client will   should borrow money from its
       2. The borrower is losing in its     be able to recover a low       shareholders to repay the loan. In
       operation and thus has no ability    value from the                 return for that, FYT agreed to a
       to repay the loan.                   collateralized machines.       6-month installment payment
       3. Collaterals included 2 aged       In case of the borrower's      schedule with the upfront payment
       printing machines, the fair market   bankruptcy following the       of RMB200, 000 which is 3 times
       value of which was 1/5 of the        disposition of the             of the client's purchase price.
       OPB.                                 machines, the client
                                            would have to face the
                                            competition from other
                                            creditors and share the
                                            auction proceeds of the
                                            machines with other
                                            creditors.

10     1. As a huge SOE, the borrower       With intervention from the     With accurate market intelligence,   7,221,155   10,109,617   2,888,462   40.00%
       has strong support from by the       local government, the          FYT managed to sell the loan to a
       local government.                    local court refused to help    local investor, who claimed to
       2. The local government directly     the client to enforce          have strong connections with the
       instructed that the local court      against the borrower and       local government.
       should not enforce any litigation    then no recovery shall be
       against the borrower.                possible from the
       3. Both the former lending bank      borrower directly.
       and AMC failed to recover
       anything from the borrower due
       to intervention from the local
       government.
Case   Key Risks                           Base Case Scenario           FYT Actions/Initiatives              Client's     FYT's        FYT's       Value-A
                                                                                                             Purchase     Recovery     Value-Add   dded
                                                                                                             Price                     ed          Ratio

11     1. As a huge SOE, the borrower      The client has no clear      1. With its local market             22,747,243   27,017,250   4,270,000   18.77%
       has strong support from the local   idea on the disposition of   intelligence, FYT found out that
       government.                         this asset during its        the borrower had made a loan of
       2. The loan is not secured by any   underwriting.                RMB30 mm to a 3rd party.
       property or fixed asset.                                         2. FYT managed to work out a
       3. The borrower is losing in its                                 settlement plan with the borrower
       operation and thus has no ability                                that the borrower should pay
       to repay the loan.                                               RMB9.5 mm through installment
       4. Total OPB is RMB23, 000,000                                   payments and also transfer its
       while the client’s purchase price                                3rd-party loan of RMB30 mm to
       amounts to RMB22, 747,243. It                                    the client as a settlement.
       seems difficult for the client to                                3. FYT eventually helped the
       make money from this asset.                                      client to recover another RMB17.5
                                                                        mm from the 3rd party for the loan
                                                                        of RMB30 mm.

				
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