C FIN SERVICES (00605.HK): Subsidiary Grants Loan of RMB 8.3 Million at Annual Interest Rate of 12%
NewTimeSpace News: China Financial International Investments Limited (stock code: 00605) announced that the board of directors is pleased to announce that on 6 August 2026, Shenzhen Lingda Small Loans (as lender) and Customer GL (as borrower) entered into a loan agreement, pursuant to which Shenzhen Lingda Small Loans agreed to grant a loan with a principal amount of RMB 8,300,000 to the borrower for a term of six months.
The announcement disclosed that the loan agreement has a principal of RMB 8,300,000 at an annual interest rate of 12%, with a tenor of six months from the date of drawdown, secured by a first legal charge mortgage over a residential property located in Nanshan District, Shenzhen, which was valued by an independent Shenzhen property valuer at a market value of approximately RMB 10,461,000 as at 31 July 2026. In respect of repayment, the borrower will repay interest on a monthly basis, and the principal will be repaid upon maturity.
Regarding the credit risk involved in the loan, the Board considers that, based on the value of the mortgaged property determined by the independent valuer, the collateral provided by the borrower for the loan is sufficient. The Company's credit assessment also took into account factors including the prime location of the collateral in Shenzhen, the borrower's substantial net assets demonstrating repayment capability, and the relatively short-term nature of the loan. The Board believes that the risk involved in advancing the loan to the borrower is controllable. The loan will be funded by the Group's general working capital.
The announcement noted that Customer GL is Mr. Xu Haijie, an individual in China engaged in trading, who is an independent third party with no connection to the Group and is a new customer introduced through the Group's network relationships. The Group is principally engaged in the provision of financial services in Hong Kong and China, and Shenzhen Lingda Small Loans is a wholly-owned subsidiary controlled by the Company. The Board considers that the grant of the loan is conducted in the ordinary and usual course of business of the Group, and that the terms of the loan agreement, entered into on normal commercial terms, are fair and reasonable and in the overall interests of the Company and its shareholders.
As one or more of the applicable percentage ratios in respect of the loan granted to the borrower, calculated under Rule 14.07 of the Listing Rules, exceeds 5% but is below 25%, the grant of the loan constitutes a discloseable transaction of the Company under Chapter 14 of the Listing Rules and is subject to the notification and announcement requirements.
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