Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
CHONG KIN GROUP HOLDINGS LIMITED ௴ ܔ ණ ྠ€ છ ٰ Ϟ ࠢ ʮ ̡
(Incorporated in the Cayman Islands with limited liability)
(Stock Code: 1609)
DISCLOSEABLE TRANSACTION PROVISION OF LOAN FACILITY
The Board is pleased to announce that on 16 March 2021, the Lender, a wholly-owned subsidiary of the Company, entered into the Facility Agreement with the Borrower, pursuant to which the Lender agreed to provide to the Borrower a loan facility of up to HK$40,000,000 for a term of 12 months subject to the terms and conditions of the Facility Agreement.
As the relevant percentage ratios in respect of the amount of financial assistance granted to the Borrower exceed 5% but are under 25%, the transaction contemplated under the Facility Agreement constitutes a discloseable transaction of the Company and is therefore subject to the announcement requirement but exempt from Shareholders' approval requirement under the Listing Rules.
The Board announces that on 16 March 2021, the Lender, a wholly-owned subsidiary of the Company, entered into the Facility Agreement with the Borrower.
THE FACILITY AGREEMENT
Principal terms of the Facility Agreement are set out as below:
Date | : | 16 March 2021 |
Lender | : | China Golden Holdings Limited, a wholly-owned subsidiary |
of the Company | ||
Borrower | : | the Borrower under the Facility Agreement |
Guarantor | : | The Guarantor, as guarantor of the Borrower to guarantee |
its obligations and performance under the Facility Agreement | ||
Amount of Loan | : | up to HK$40,000,000 |
Facility | ||
Interest rate | : | 18% per annum, payable in arrears on a monthly basis |
Availability period | : | available for drawdown within 14 days from the date of the |
Facility Agreement | ||
Maturity date: | : | 12 months from the date of the Facility Agreement |
Prepayment | : | the Borrower may give prior written notice that specifies |
the date of prepayment to the Lender and make an early | ||
repayment of all of the outstanding balance of the Loan | ||
Facility together with all interest accrued and unpaid | ||
thereon | ||
Security for the Loan | : | the Loan Facility is secured by a pledge over certain listed |
Facility | companies securities legally and beneficially owned by the | |
Borrower and located in Hong Kong |
To the best of the Directors' knowledge, information and belief having made all reasonable enquiries, are Third Parties independent of the Company and its connected persons as at the date of this announcement.
The Loan Facility will be funded by internal resources of the Group.
INFORMATION AND RELATIONSHIP WITH THE BORROWER
The Borrower is a limited company incorporated in Hong Kong, its principal business is property holding.
To the best of the Directors' knowledge, information and belief having made all reasonable enquiries, the Borrower and its ultimate beneficial owners are third parties independent of the Company and its connected persons as at the date of this announcement.
REASONS FOR ENTERING INTO THE FACILITY AGREEMENT
The Group is principally engaged in three operating segments: (i) provision of concrete placing and other ancillary services as a subcontractor for both public and private sector projects, including building and infrastructure related projects in Hong Kong; (ii) provision of new energy vehicle and logistics related services including new energy vehicle sales and leasing, road freight transportation and the provision of finance leasing services in the PRC; and (iii) provision of cross-border payment and money exchange services in the United Kingdom, and provision of money lending services in Hong Kong.
The Lender is a registered money lender holding a valid money lenders licence under the Money Lenders Ordinance (Chapter 163 of the Laws of Hong Kong) and is principally engaged in the business of money lending. The provision of the Loan Facility is a transaction carried out as part of the ordinary and usual course of business activities of the Group. The Loan Facility is funded by internal resources of the Group.
The terms of the Facility Agreement (including the interest rate) were negotiated on arm's length basis between the Lender and the Borrower and were on normal commercial terms based on the Group's credit policy. Taking into account the results of the due diligence on the financial background of the Borrower, the value of the security provided and the stable interest income expected to be generated from the Loan Facility, the Directors consider that the terms of the Facility Agreement are fair and reasonable and the entering into of the Facility Agreement is in the interests of the Company and its Shareholders as a whole.
IMPLICATIONS UNDER THE LISTING RULES
As the relevant percentage ratios in respect of the amount of financial assistance granted to the Borrower exceed 5% but are under 25%, the transaction contemplated under the Facility Agreement constitutes a discloseable transaction of the Company and is therefore subject to the announcement requirement but exempt from Shareholders' approval requirement under the Listing Rules.
DEFINITIONS
"Board" | board of Directors of the Company |
"Borrower" | Rainbow Lead Ventures Limited (ჯ௴ҳϞࠢʮ̡), a company |
incorporated under the laws of BVI with limited liability and | |
solely owned by the Guarantor | |
"Company" | Chong Kin Group Holdings Limited, a company incorporated |
under the laws of the Cayman Islands, the shares of which are | |
listed on the Stock Exchange (stock code: 1609) | |
"connected person(s)" | has the meaning ascribed to it under the Listing Rules |
"Directors" | the directors of the Company |
"Facility Agreement" | the facility agreement dated 16 March 2021 entered into between |
the Lender and the Borrower relating to the granting of the Loan | |
Facility | |
"Group" | the Company and its subsidiaries |
"Guarantor" | Mr. Yeung Wan Yiu (เථᘴ), the sole shareholder and director |
of the Borrower | |
"Lender" | China Golden Holdings Limited (ʕΈණྠϞࠢʮ̡), a company |
incorporated under the laws of Hong Kong with limited liability | |
and an wholly-owned subsidiary of the Company | |
"Listing Rules" | the Rules Governing the Listing of Securities on the Stock |
Exchange | |
"Loan Facility" | the loan facility in the amount of up to HK$40,000,000 granted by |
the Lender to the Borrower pursuant to the terms of the Facility | |
Agreement |
"percentage ratio(s)" | percentage ratio(s) as set out in Rule 14.07 of the Listing Rules |
to be applied for determining the classification of a transaction | |
"Share(s)" | ordinary share(s) of HK$0.01 each of the Company |
"Shareholder(s)" | holder(s) of the Shares |
"Stock Exchange" | The Stock Exchange of Hong Kong Limited |
"Hong Kong" | Hong Kong Special Administrative Region of the PRC |
"PRC" | the People's Republic of China |
"HK$" | Hong Kong dollars, the lawful currency of Hong Kong |
"%" | per cent |
By order of the Board
Chong Kin Group Holdings Limited
Zhang Jinbing
Chairman and Chief Executive Officer
Hong Kong, 19 March 2021
As at the date hereof, the Honorary Chairman of the Company is Mr. Lyu Changsheng; the Board comprises three executive Directors, namely Mr. Zhang Jinbing (Chairman), Mr. Ma Chao (co-Chairman and Chief Executive Officer) and Mr. Qiu Peiyuan; one non-executive Director, Mr. Gao Gunter; and three independent non-executive Directors, namely Mr. Tam Ping Kuen Daniel, Dr. Li Yifei and Mr. Yan Haiting.
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Chong Kin Group Holdings Ltd. published this content on 19 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 March 2021 15:14:09 UTC.