QINGCI GAMES (06633.HK): RMB50 million connected loans to chairman Yang Xu and CEO Huang Zhiqiang at 3.2% for one year
NewTimeSpace News: QINGCI GAMES (06633.HK) announced that on 27 October 2026, the Company, as lender, entered into loan agreements with Mr. Yang and Mr. Huang respectively, pursuant to which it agreed to provide loan facilities with principal amounts of not more than RMB46 million and RMB4 million respectively for their personal financial arrangements, amounting to not more than RMB50 million in aggregate. The availability period runs from 27 October 2026 to 26 October 2027, and the facilities are one-off and non-revolving, with each drawdown reducing the available amount and repaid amounts not available for re-drawdown.
According to the announcement, the loans bear a fixed interest rate of 3.2% per annum, determined by reference to the one-year Loan Prime Rate (LPR) plus 20 basis points, with interest accrued from the date each loan is actually received by the borrower and not deductible from the principal in advance; unless prepaid, all outstanding principal and accrued interest shall be repaid to the Company in one lump sum at the expiry of the availability period. The two loans are independent of and not conditional upon each other. The loan agreements also impose share transfer restrictions: throughout the term, without the Company's prior written consent, the borrowers may not reduce, transfer or gift their directly or indirectly held shares in any form, nor create any encumbrance over such shares; if the Company considers that a borrower's financial position has materially deteriorated or any default has occurred, it may demand immediate prepayment and immediately cancel all undrawn facilities, with default interest calculated at four times the one-year LPR.
The Company said that providing short-term financing to key members of management to meet their personal financial arrangements is important to maintaining management stability and supporting the Group's long-term development; the loans will be funded from the Group's internal resources, and the Group has sufficient available cash and liquid resources to provide loans of up to RMB50 million in aggregate without affecting its daily operations and business development, with interest income expected. As at the date of the announcement, Mr. Yang is a substantial shareholder, executive Director and chairman of the Board, holding 206,057,019 shares, representing 29.81% of the total issued share capital, while Mr. Huang is an executive Director and chief executive officer, holding 62,322,773 shares, representing 9.01%; both are connected persons and the loans constitute connected transactions which, as the highest applicable percentage ratio exceeds 0.1% but is less than 5%, are subject to the reporting and announcement requirements but exempt from the circular (including independent financial advice) and independent shareholders' approval requirements, with both Directors having abstained from voting on the relevant Board resolutions.
