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 LOAN
The Board wishes to announce that on 6 March 2020, the Lender (a wholly-owned subsidiary of the Company) and the Borrower entered into the Third Renewal Agreement, pursuant to which the Lender agreed to renew the Loan in the aggregate principal amount of HK$20.0 million to be repayable on 6 March 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 Loan are more than 5% but less than 25%, the renewal of the Loan under the Third 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 6 March 2020, the Lender (a wholly-owned subsidiary of the Company) and the Borrower entered into the Third Renewal Agreement, pursuant to which the Lender agreed to renew the Loan in the aggregate principal amount of HK$20.0 million to be repayable on 6 March 2021.
THE LOAN AGREEMENT AND THE RENEWAL AGREEMENTS
The Loan was granted under Loan Agreement dated 5 June 2018. The principal terms of the Loan Agreement and the Renewal Agreements are as follows:
Loan Agreement | |
Date: | 5 June 2018 |
Lender: | Ban Loong Finance Company Limited |
Borrower: | Lam Sing Kong |
Loan principal: | HK$20.0 million |
Interest rate: | 18.0% per annum |
Collateral: | Share charge was provided as collateral during the second |
renewal of the Loan | |
Loan period: | Initially, three months |
Drawdown: | 7 June 2018 |
Repayment date: | Initially, 6 September 2018 |
First renewal: | Renewed for six months until 6 March 2019 pursuant to the |
First Renewal Agreement | |
Second renewal: | Renewed for twelve months until 6 March 2020 pursuant to |
the Second Renewal Agreement | |
Third renewal: | Renewed for twelve months until 6 March 2021 pursuant to |
the Third Renewal Agreement |
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INFORMATION ON THE BORROWER
To the best of the knowledge, information and belief of the Directors having made all reasonable enquiry, the Borrower (i.e. Mr. Lam Sing Kong) is a merchant and a third party independent of the Company and its connected persons.
REASONS FOR AND BENEFITS OF THE ENTERING INTO THE THIRD 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 Loan to the Borrower pursuant to the Loan Agreement and the renewal of the Loan under the Third Renewal Agreement is in the ordinary course of business of the Group. The Lender has financed the Loan 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 Agreement (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 Loan and its renewals and the satisfactory payment records of the Borrower in the past, the Directors consider that the terms of the Loan Agreement (including the interest rate and term of loan) and the Renewal Agreements are fair and reasonable and the entering into of the Loan Agreement and the 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 principal amount and annual interest income under the Loan are more than 5% but less than 25%, the renewal of the Loan under the Third 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" | Mr. Lam Sing Kong, the borrower of the Loan, a merchant |
and a third party independent of the Company and its | |
connected persons | |
"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 September 2018 entered |
into between the Lender and the Borrower in respect of the | |
renewal of the Loan to be repayable on 6 March 2019 | |
"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 |
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"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 | |
"Loan" | the loan with the principal amount of HK$20.0 million |
granted by the Lender to the Borrower pursuant to the Loan | |
Agreement | |
"Loan Agreement" | the loan agreement dated 5 June 2018 entered into between |
the Lender and the Borrower in respect of the Loan | |
"Renewal Agreements" | collectively, the First Renewal Agreement, the Second |
Renewal Agreement and the Third Renewal Agreement | |
"Second Renewal | the loan renewal agreement dated 22 February 2019 entered |
Agreement" | into between the Lender and the Borrower in respect of the |
renewal of the Loan to be repayable on 6 March 2020 | |
"Stock Exchange" | The Stock Exchange of Hong Kong Limited |
"Third Renewal Agreement" | the loan renewal agreement dated 6 March 2020 entered into |
between the Lender and the Borrower in respect of the | |
renewal of the Loan to be repayable on 6 March 2021 | |
By order of the Board | |
Ban Loong Holdings Limited | |
Chow Wang | |
Deputy Chairman & Chief Executive Officer | |
Hong Kong, 6 March 2020 |
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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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Ban Loong Holdings Ltd. published this content on 06 March 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 March 2020 09:07:06 UTC