APEX ACE HLDG(06036.HK): US$3.5 million invested in key person insurance policy, triggering disclosure requirements under listing rules
Apex Ace Holding Limited (stock code: 6036) announced on January 6, 2026 that its indirectly wholly-owned subsidiary, Avite International, purchased a key person insurance policy from HSBC Life on January 5, 2026, and paid an initial single premium of US$3.5 million (equivalent to approximately HK$27,300,000).
The main terms of the policy show that the insured is Mr. Li (70 years old), the executive director, chairman of the board of directors and chief executive officer of the company, with a lifetime policy term. The premium amount was determined after fair negotiations between the applicant and HSBC Life, with reference to factors including the insured's age, gender, risk sum assured, and the death benefit payable to the applicant upon Mr. Li's death. The returns provided by the policy include guaranteed cash value and non-guaranteed returns. The guaranteed cash value can only be withdrawn upon full or partial surrender of the policy, or upon termination of the policy.
According to the terms of the financing letter, the Group is required to take out a key person insurance policy with the applicant as the beneficiary to ensure that the Group is protected from any potential loss or damage that may arise from Mr. Li's unfortunate death. The board of directors believes that the policy can provide financial benefits and protection to the Group in the event of Mr. Li's unfortunate death. In addition, the value of the death benefit that the applicant can receive under the policy upon the insured's death will be higher than the premiums paid after a certain period of time.
As the highest applicable percentage ratio of the purchase transaction exceeds 5% but all applicable percentage ratios are below 25%, in accordance with Rule 14.07 of the Listing Rules, the purchase transaction constitutes a discloseable transaction and is therefore subject to the reporting and announcement requirements under Chapter 14 of the Listing Rules.
On the same day (January 5, 2026), the borrower confirmed its acceptance of the financing letter issued by the lender, The Hongkong and Shanghai Banking Corporation Limited, whereby the lender agreed to provide the borrower with a revolving trade loan facility of up to HK$215,800,000. The financing letter stipulates, among other things, specific performance obligations for the controlling shareholder: if Mr. Li ceases to serve as the chief executive officer and chairman of the Group, it will constitute a default; any change in the largest shareholder and chief executive officer/chairman will trigger a review of the financing under the financing letter.
As of the date of this announcement, Jiaze (wholly-owned by Mr. Li) is the largest shareholder of the company, holding approximately 69.76% of the company's equity. Mr. Li and Jiaze are each controlling shareholders.
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