Yue Da International : DISCLOSEABLE TRANSACTION - FACTORING AGREEMENT

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.

YUE DA INTERNATIONAL HOLDINGS LIMITED

悅 達 國 際 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 629)

DISCLOSEABLE TRANSACTION - FACTORING AGREEMENT

FACTORING AGREEMENT

The Board hereby announces that on 12 August 2020, Yueda Commercial Factoring, an indirectly wholly owned subsidiary of the Company, entered into a factoring agreement (the "Factoring Agreement") with Jianhu. Pursuant to the Factoring Agreement, a credit limit of RMB50,000,000 was granted to Jianhu at the sum of annual interest rate and factoring administration fee ranging from 9.0% to 9.9% which would take effect from 12 August 2020 and expire on 11 August 2021. The factoring is with recourse.

LISTING RULES IMPLICATIONS

As the highest applicable percentage ratio for the Company as calculated under Rule 14.07 of Listing Rules in relation to the Factoring Agreement exceeds 5% but is less than 25%, the entering into the Factoring Agreement constitutes discloseable transaction for the Company under the Listing Rules and is subject to the reporting and announcement requirements under Chapter 14 of the Listing Rules.

FACTORING AGREEMENT

The Board hereby announces that on 12 August 2020, Yueda Commercial Factoring, an indirect wholly owned subsidiary of the Company, entered into Factoring Agreement, pursuant to which Yueda Commercial Factoring agreed to provide Accounts Receivable Services and granted factoring loan credit limits to Jianhu and Jianhu is entitled to apply for accounts receivables transfer and factoring services. If Jianhu needs financing facility from Yueda Commercial Factoring, it will make an application for factoring services. If the credit assessment is to the satisfaction of Yueda Commercial Factoring, Yueda Commercial Factoring will grant the factoring loan within the credit limit.

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The principal terms of the Factoring Agreement entered into between the Company and Jianhu are set out below:

Factoring Agreement

Date

Parties

Credit limit

Annual rate of return (composed of interest rate and factoring administration fees)

• 12 August 2020
• (1) Jianhu (To the best knowledge, information and belief of the Directors having made all reasonable enquiries, Jianhu and its ultimate beneficial owner are Independent Third Parties.)
• 1. Yueda Commercial Factoring
• RMB50,000,000 (equivalent to approximately HK$56,027,000)
• 9.0%-9.9%

Guarantor	:	Jianhu County Development Zone Development Investment
		Company Limited ("Jianhu Development")（建湖縣開發區
		建設投資有限公司）
Expiry date of the	:	11 August 2021
factoring facilities

The annual rate of return of the Factoring Agreement is determined by the parties through arm's length negotiation taking into account: (i) the credit rating of Jianhu and the contracting parties; (ii) the credit period; (iii) the factoring is with recourse; and (iv) the factoring loan is guaranteed by Jianhu Development.

Jianhu is beneficially owned as to 100% by Jianhu Development, which is a company established by Yancheng City Jianhu County People's Government with independent management and operation.

INFORMATION ON THE PARTIES TO THE FACTORING AGREEMENT

Yueda Commercial Factoring is a company established in the PRC on 15 August 2017 and is principally engaged in the provision of factoring, accounts receivable management and collection and factoring consultancy services.

Jianhu is a company established in the PRC and is principally engaged in agriculture and agricultural technology development.

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REASONS FOR THE FACTORING AGREEMENT

The Group is principally engaged in factoring related business in the PRC. The Directors consider that the Factoring Agreement was entered into on normal commercial terms and in the ordinary and usual course of business of the Group.

Given that the Factoring Agreement is being conducted in the ordinary and usual course of business of Yueda Commercial Factoring, which will contribute profit to the Company over the financing term, are under normal commercial terms, and are beneficial to the Group in its business expansion and establishment of long term business relationship with Jianhu, the Directors are of the view that the terms of and the Factoring Agreement are fair and reasonable and are in the interests of the Company and Shareholders as a whole.

LISTING RULES IMPLICATIONS

As the highest applicable percentage ratio for the Company as calculated under Rule 14.07 of Listing Rules in relation to the Factoring Agreement exceeds 5% but is less than 25%, the entering into the Factoring Agreement constitutes a discloseable transaction for the Company under the Listing Rules and is subject to the reporting and announcement requirements under Chapter 14 of the Listing Rules.

DEFINITIONS

In this announcement, unless the context otherwise requires, the following expressions shall have the following respective meanings.

"Board"

"Company"

the board of Directors of the Company

Yue Da International Holdings Limited, a company incorporated with limited liability in the Cayman Islands, whose Shares are listed on the of the Stock Exchange

"connected person(s)"

"Director(s)"

"Group"

"HK$"

"Hong Kong"

"Independent Third Party(ies)"

has the meaning ascribed to it under the Listing Rules

the director(s) of the Company

the Company and its subsidiaries

Hong Kong Dollar, the lawful currency of Hong Kong

The Hong Kong Special Administrative Region of the PRC

the independent third party(ies) who is/are, to the best of the Directors' knowledge, information and belief having made all reasonable enquiries, independent of and not connected with the Company and the connected person(s) (as defined in the Listing Rules) of the Company

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"Jianhu"

"Listing Rules"

"PRC"

"RMB"

"Shareholders"

"Shares"

"Stock Exchange"

"subsidiary(ies)"

"Yueda Commercial Factoring"

"%"

Hong Kong, 12 August 2020

Jianhu Advanced Agricultural Technology Development Company Limited（建湖高新農業科技發展有限公司）, a

company established in the PRC, which is principally engaged in agriculture and agricultural technology development.

the Rules Governing the Listing of Securities on Main Board of The Stock Exchange of Hong Kong Limited

the People's Republic of China, for the purpose of this announcement only, excludes Hong Kong, Macau Special Administrative Region of the People's Republic of China and Taiwan

Renminbi, the lawful currency of the PRC

the holders of Shares

ordinary share(s) having a par value of HK$0.1 each in the capital of the Company

The Stock Exchange of Hong Kong Limited

has the meaning ascribed to it under the Listing Rules

Yueda (Shenzhen) Commercial Factoring Co., Ltd., a company established in the PRC and a subsidiary of the Group, which principal business is, among other things, commercial factoring

per cent

By order of the Board

Yue Da International Holdings Limited

Cai Baoxiang

Executive Director

As at the date of this announcement, the Board comprises the following members: (a) as non-executive Directors, Mr. Liu Debing, Mr. Li Biao and Hu Huaimin; (b) as executive Directors, Mr. Sun Yuanming, Mr. Cai Baoxiang and Mr. Bai Zhaoxiang; and (c) as independent non-executive Directors, Mr. Cui Shuming, Dr. Liu Yongping and Mr. Cheung Ting Kee.

Unless otherwise stated, translation of RMB into HK$ is based on the approximate exchange rate of RMB1.00 to HK$1.12053 for information purpose only. Such translation should not be construed as a representation that the relevant amounts have been, could have been, or could be converted at that or any other rate or at all.

If there is any inconsistency in this announcement between the Chinese and English versions, the English version shall prevail.

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