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

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 THE RENEWAL OF LOANS

The Board wishes to announce that on 5 February 2020, the Lender (a wholly-owned subsidiary of the Company) and the Borrower entered into the Fifth Renewal Agreement, pursuant to which the Lender agreed to renew the Loans in the aggregate principal amount of HK$17.5 million to be repayable on 5 February 2021.

As the percentage ratios under Rule 14.07 of the Listing Rules in respect of the principal amount and annual interest income under the Loans are more than 5% but less than 25%, the renewal of the Loans under the Fifth 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 5 February 2020, the Lender (a wholly-owned subsidiary of the Company) and the Borrower entered into the Fifth Renewal Agreement, pursuant to which the Lender agreed to renew the Loans in the aggregate principal amount of HK$17.5 million to be repayable on 5 February 2021.

THE LOAN AGREEMENTS AND THE RENEWAL AGREEMENTS

The Loans were granted under three Loan Agreements dated 7 February 2018, 2 March 2018 and 9 July 2018, respectively. The principal terms of the Loan Agreements and the Renewal Agreements are as follows:

	Loan A Agreement	Loan B Agreement	Loan C Agreement
Date:	7 February 2018	2 March 2018	9 July 2018
Lender:	Ban Loong Finance	Ban Loong Finance	Ban Loong Finance
	Company Limited	Company Limited	Company Limited
Borrower:	Hong Kong	Hong Kong	Hong Kong
	Y&S Limited	Y&S Limited	Y&S Limited
Loan principal:	HK$6 million	HK$3 million	HK$8.5 million
Interest rate:	18.0% per annum	18.0% per annum	18.0% per annum
Collateral:	Personal guarantee	Personal guarantee	Personal guarantee
	was provided by the	was provided by the	was provided by the
	sole director of the	sole director of the	sole director of the
	Borrower, and share	Borrower, and share	Borrower, and share
	charge was provided	charge was provided	charge was provided
	as collateral	as collateral	as collateral
Loan period:	Initially,	Initially, six months	Initially, six months
	twelve months
Drawdown:	9 February 2018	6 March 2018	11 July 2018
Repayment date:	Initially,	Initially,	Initially,
	8 February 2019	5 September 2018	10 January 2019

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	Loan A Agreement	Loan B Agreement	Loan C Agreement
First renewal:	N/A	Pursuant to the First	N/A
		Renewal Agreement
		dated 6 August 2018,
		Loan B was renewed
		for four months until
		5 January 2019 under
		the same terms and
		conditions
Second renewal:	N/A	Pursuant to the	N/A
		Second Renewal
		Agreement dated 4
		January 2019, Loan
		B was renewed for
		one month until
		5 February 2019
		under the same terms
		and conditions
Third renewal:	N/A	N/A	Pursuant to the Third
			Renewal Agreement
			dated 5 January
			2019, Loan C was
			renewed for 26 days
			until 5 February
			2019 under the same
			terms and conditions

Fourth renewal:	Pursuant to the
	Fourth Renewal
	Agreement dated 29
	January 2019, Loan
	A was renewed for
	eleven months and 28
	days until 5 February
	2020 under the same
	terms and conditions

Pursuant to the Fourth Renewal Agreement dated 29 January 2019, Loan B was renewed for twelve months until 5 February 2020 under the same terms and conditions

Pursuant to the Fourth Renewal Agreement dated 29 January 2019, Loan C was renewed for twelve months until 5 February 2020 under the same terms and conditions

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	Loan A Agreement
Fifth renewal:	Pursuant to the Fifth
	Renewal Agreement
	dated 5 February
	2020, Loan A is
	renewed for twelve
	months until 5
	February 2021 under
	the same terms and
	conditions

INFORMATION ON THE BORROWER

Loan B Agreement

Pursuant to the Fifth Renewal Agreement dated 5 February 2020, Loan B is renewed for twelve months until 5 February 2021 under the same terms and conditions

Loan C Agreement

Pursuant to the Fifth Renewal Agreement dated 5 February 2020, Loan C is renewed for twelve months until 5 February 2021 under the same terms and conditions

The Borrower is company incorporated in Hong Kong with limited liability, which is engaged in the trading of clothing and seafood. To the best of the knowledge, information and belief of the Directors having made all reasonable enquiry, the entire issued share capital of the Borrower is beneficially owned by Ms. Huang Fengjiao, a merchant and a third party independent of the Company and its connected persons.

REASONS FOR AND BENEFITS OF THE ENTERING INTO THE FIFTH 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 Fifth 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 Loans 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 documentations with the Borrower.

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The terms of the Loan Agreements (including the interest rate and the term of loan) and the 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, the stable interest income expected to be generated from the Loans and their renewals and the satisfactory payment records of the Borrower in the past, the Directors consider that the terms of the Loan Agreements (including the interest rate and term of loan) and the Renewal Agreements are fair and reasonable and the entering into of the Loan Agreements and the Renewal Agreements is in the interests of the Company and its shareholders as a whole.

LISTING RULES IMPLICATIONS

As the percentage ratios under Rule 14.07 of the Listing Rules in respect of the principal amount and annual interest income under the Loans are more than 5% but less than 25%, the renewal of the Loans under the Fifth 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"	Hong Kong Y&S Limited, a company incorporated in Hong
	Kong 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 Renewal Agreement"	the loan renewal agreement dated 6 August 2018 entered
	into between the Lender and the Borrower in respect of the
	renewal of Loan B to be repayable on 5 January 2019

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"Fifth Renewal Agreement"	the loan renewal agreement dated 4 February 2020 entered
	into between the Lender and the Borrower in respect of the
	renewal of the Loans to be repayable on 5 February 2021
"Fourth Renewal Agreement"	the loan renewal agreement dated 29 January 2019 entered
	into between the Lender and the Borrower in respect of the
	renewal of the Loans to be repayable on 5 February 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"	collectively, Loan A, Loan B and Loan C
"Loan A"	the loan with the principal amount of HK$6 million granted
	by the Lender to the Borrower pursuant to Loan A
	Agreement
"Loan A Agreement"	the loan agreement dated 7 February 2018 entered into
	between the Lender and the Borrower in respect of Loan A
"Loan Agreements"	collectively, Loan A Agreement, Loan B Agreement and
	Loan C Agreement
"Loan B"	the loan with the principal amount of HK$3 million granted
	by the Lender to the Borrower pursuant to Loan B
	Agreement
"Loan B Agreement"	the loan agreement dated 2 March 2018 entered into
	between the Lender and the Borrower in respect of Loan B

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"Loan C"	the loan with the principal amount of HK$8.5 million
	granted by the Lender to the Borrower pursuant to Loan C
	Agreement
"Loan C Agreement"	the loan agreement dated 9 July 2018 entered into between
	the Lender and the Borrower in respect of Loan C
"Renewal Agreements"	collectively, the First Renewal Agreement, the Second
	Renewal Agreement, the Third Renewal Agreement, the
	Fourth Renewal Agreement and the Fifth Renewal
	Agreement
"Second Renewal	the loan renewal agreement dated 4 January 2019 entered
Agreement"	into between the Lender and the Borrower in respect of the
	renewal of Loan B to be repayable on 5 February 2019
"Stock Exchange"	The Stock Exchange of Hong Kong Limited
"Third Renewal Agreement"	the loan renewal agreement dated 5 January 2019 entered
	into between the Lender and the Borrower in respect of the
	renewal of Loan C to be repayable on 5 February 2019
	By order of the Board
	Ban Loong Holdings Limited
	Chow Wang
	Deputy Chairman & Chief Executive Officer
Hong Kong, 5 February 2020

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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