Ban Loong : DISCLOSEABLE TRANSACTION - PROVISION OF FINANCIAL ASSISTANCE IN RELATION TO RENEWAL OF LOAN

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.

(Incorporated in Bermuda with limited liability)

(Stock Code: 30)

DISCLOSEABLE TRANSACTION -

PROVISION OF FINANCIAL ASSISTANCE

IN RELATION TO RENEWAL OF LOAN

The Board wishes to announce that on 26 November 2019, the Lender (a wholly-owned subsidiary of the Company) and the Borrower entered into the Fourth Loan Renewal Agreement, pursuant to which the Lender agreed to renew the Loans in the aggregate principal amount of HK$20 million to be repayable on 26 November 2020.

As the percentage ratios under Rule 14.07 of the Listing Rules in respect of the monetary advantage together with the value of the financial assistance pursuant to the renewal of the Loans under the Fourth Loan Renewal Agreement (under the assets and consideration ratios) and the interest income for the Loans during the period so renewed (under the revenue and profits ratios), when aggregated with the monetary advantage or interest income derived under the Loans prior to such renewal, are more than 5% but less than 25%, the renewal of the Loans under the Fourth Loan Renewal Agreement constitutes a discloseable transaction for the Company under Chapter 14 of the Listing Rules and is therefore subject to the reporting and announcement requirements under the Listing Rules.

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The Board wishes to announce that on 26 November 2019, the Lender (a wholly-owned subsidiary of the Company) and the Borrower entered into the Fourth Loan Renewal Agreement, pursuant to which the Lender agreed to renew the Loan in the aggregate principal amount of HK$20 million to be repayable on 26 November 2020.

THE LOAN AGREEMENTS AND THE LOAN RENEWAL AGREEMENTS

The Loans were granted under two loan agreements dated 25 July 2017 and 2 August 2017, respectively. The principal terms of the Loan Agreements and the Loan Renewal Agreements are as follows:

	First Loan Agreement
Date:	25 July 2017
Lender:	Ban Loong Finance Company
	Limited
Borrower:	Yin Fu International
	Investment Limited
Loan principal:	HK$10 million
Interest rate:	19.2% per annum
Collateral:	Share charge was provided as
	collateral during the Fourth
	Loan Renewal of the loan

Second Loan Agreement

2 August 2017

Ban Loong Finance Company Limited

Yin Fu International

Investment Limited

HK$10 million

19.2% per annum

Share charge was provided as collateral during the Fourth Loan Renewal of the loan

Loan period:	Initially, three months
Drawdown:	27 July 2017
Repayment date:	Initially, 26 October 2017
First renewal:	Renewed for one month until
	26 November 2017 under the
	same terms and conditions
	(including interest rate)
	pursuant to the First Loan
	Renewal Agreements

Initially, three months

4 August 2017

Initially, 3 November 2017

Renewed for one month until 3 December 2017 under the same terms and conditions (including interest rate) pursuant to the First Loan Renewal Agreements

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	First Loan Agreement	Second Loan Agreement
Second renewal:	Renewed for twelve months	Renewed for twelve months
	until 26 November 2018	less one week until
	under the same terms and	26 November 2018 under the
	conditions (including interest	same terms and conditions
	rate) pursuant to the Second	(including interest rate)
	Loan Renewal Agreement	pursuant to the Second Loan
		Renewal Agreement

Third renewal:	Renewed for twelve months
	until 26 November 2019
	under the same terms and
	conditions (including interest
	rate) pursuant to the Third
	Loan Renewal Agreement

Renewed for twelve months until 26 November 2019 under the same terms and conditions (including interest rate) pursuant to the Third Loan Renewal Agreement

Fourth renewal:	Renewed for twelve months
	until 26 November 2020
	under the same terms and
	conditions (including interest
	rate) pursuant to the Fourth
	Loan Renewal Agreement

INFORMATION ON THE BORROWER

Renewed for twelve months until 26 November 2020 under the same terms and conditions (including interest rate) pursuant to the Fourth Loan Renewal Agreement

The Borrower is a company incorporated in the British Virgin Islands with limited liability which is engaged in trading of tea, clothing and electronic products. To the best of the knowledge, information and belief of the Directors having made all reasonable enquiry, each of the Borrower and its ultimate beneficial owner(s) is a third party independent of the Company and its connected persons (as defined under the Listing Rules).

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REASONS FOR AND BENEFITS OF THE ENTERING INTO THE FOURTH LOAN

RENEWAL AGREEMENT

The principal activity of the Company is investment holding. Its subsidiaries are principally engaged in money lending and trading of goods and commodities. The Lender is a company incorporated in Hong Kong with limited liability, a wholly-owned subsidiary of the Company and a licensed money lender in Hong Kong registered under Money Lenders Ordinance, Chapter 163 of the Laws of Hong Kong. The granting of the Loans to the Borrower pursuant to the Loan Agreements and the renewal of the Loans under the Fourth Loan Renewal Agreement are in the ordinary course of business of the Group. The Lender has financed the Loans with the Group's internal cash resources.

The Directors are of the view that the credit assessment procedures for renewing the Loan with the Borrower would be simpler, quicker and more cost-effective as compared to the granting of a new loan to a new customer, since the Lender already has the benefit of the background understanding, established customer relationship and signed legal documentation with the Borrower.

The terms of the Loan Agreements (including the interest rate and the term of loan) and the Loan Renewal Agreements were negotiated on an arm's length basis between the Lender and the Borrower and were on normal commercial terms based on the Company's credit policy. Taking into account the results of the Company's due diligence on the financial background and repayment ability of the Borrower and the stable interest income expected to be generated from the Loans and its renewals, the Directors consider that the terms of the Loan Agreements (including the interest rate and term of loan) and the Loan Renewal Agreements are fair and reasonable and the entering into of the Loan Agreements and the Loan Renewal Agreements is in the interests of the Company and its shareholders as a whole.

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LISTING RULES IMPLICATIONS

As the percentage ratios under Rule 14.07 of the Listing Rules in respect of the monetary advantage together with the value of the financial assistance pursuant to the renewal of the Loans under the Fourth Loan Renewal Agreement (under the assets and consideration ratios) and the interest income for the Loans during the period so renewed (under the revenue and profits ratios), when aggregated with the monetary advantage or interest income derived under the Loans prior to such renewal, are more than 5% but less than 25%, the renewal of the Loans under the Fourth Loan Renewal Agreement constitutes a discloseable transaction for the Company under Chapter 14 of the Listing Rules and is therefore subject to the reporting and announcement requirements under the Listing Rules.

DEFINITIONS

In this announcement, the following expressions have the following meanings:

"Board"	the board of Directors
"Borrower"	Yin Fu International Investment Limited, a company
	incorporated in the British Virgin Islands with limited
	liability
"Company"	Ban Loong Holdings Limited, a company incorporated in
	Bermuda with limited liability and the shares of which are
	listed on the Main Board of the Stock Exchange with stock
	code: 30
"connected person(s)"	having the meaning ascribed hereto under the Listing Rules
"Director(s)"	the director(s) of the Company
"First Loan"	the loan in the principal amount of HK$10 million granted
	by the Lender to the Borrower pursuant to the loan
	agreement dated 25 July 2017
"First Loan Renewal	two loan renewal agreements both dated 25 October 2017
Agreements"	entered into between the Lender and the Borrower in respect
	of (i) the renewal of the First Loan to be repayable on 26
	November 2017 and (ii) the renewal of the Second Loan to
	be repayable on 3 December 2017, respectively

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"Fourth Loan Renewal	the loan renewal agreement dated 26 November 2019
Agreement"	entered into between the Lender and the Borrower in respect
	of the renewal of the Loans to be repayable on 26 November
	2020
"Group"	the Company and its subsidiaries
"HK$"	Hong Kong Dollars, the lawful currency of Hong Kong
"Hong Kong"	the Hong Kong Special Administrative Region of the
	People's Republic of China
"Lender"	Ban Loong Finance Company Limited, a company
	incorporated in Hong Kong with limited liability and a
	wholly-owned subsidiary of the Company
"Listing Rules"	the Rules Governing the Listing of Securities on the Stock
	Exchange
"Loans"	the First Loan and the Second Loan
"Loan Agreements"	two loan agreements dated 25 July 2017 and 2 August 2017
	entered into between the Lender and the Borrower in respect
	of the Loans
"Loan Renewal Agreements"	collectively, the First Loan Renewal Agreements, the
	Second Loan Renewal Agreement, the Third Loan Renewal
	Agreement and the Fourth Loan Renewal Agreement
"Second Loan"	the loan with the principal amount of HK$10 million
	granted by the Lender to the Borrower pursuant to the loan
	agreement dated 4 August 2017
"Second Loan Renewal	the loan renewal agreement dated 16 November 2017
Agreement"	entered into between the Lender and the Borrower in respect
	of the renewal of the Loans to be repayable on 26 November
	2018

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"Stock Exchange"	The Stock Exchange of Hong Kong Limited
"Third Loan Renewal	the loan renewal agreement dated 16 November 2018
Agreement"	entered into between the Lender and the Borrower in respect
	of the renewal of the Loans to be repayable on 26 November
	2019
	By order of the Board
	Ban Loong Holdings Limited
	Chow Wang
	Deputy Chairman & Chief Executive Officer

Hong Kong, 26 November 2019

As at the date of this announcement, the Board of the Company comprises:

Executive Directors:

Mr. Wang Minghui (Chairman)

Mr. Chow Wang (Deputy Chairman & Chief Executive Officer)

Mr. Yin Pinyao

Mr. Chu Ka Wa (Chief Financial Officer)

Mr. Wang Zhaoqing (Chief Operating Officer)

Non-executive Director:

Mr. Fong For

Independent Non-executive Directors:

Mr. Jiang Zhi

Mr. Leung Ka Kui, Johnny

Ms. Wong Chui San, Susan

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