CHANGMAO BIO (00954.HK) refinances RMB93 million project loan into a 10-year bank loan at LPR minus 0.5%
NewTimeSpace News: On November 9, 2026, Changmao Biochemical Engineering Company Limited (00954.HK) announced that, after further negotiation with the banks, the company and its wholly-owned subsidiary Changmao (Dalian) New Materials Co., Ltd. signed a new loan agreement with the banks on the same day, replacing the outstanding balance of RMB93 million under Project Loan II with a 10-year long-term bank loan.
According to the announcement, Changmao Dalian has two project loans with outstanding balances of RMB48.748 million and RMB93 million as at the date of the announcement, the latter being Project Loan II to be refinanced. The new bank loan has a principal of RMB93 million, with Industrial and Commercial Bank of China (Changzhou and Dalian branches) and Shanghai Pudong Development Bank (Changzhou branch) as lenders. The company must draw down the facility on a cumulative basis before October 31, 2027, with all proceeds used to repay Project Loan II, and the company provides a full-term, full-amount joint and several liability guarantee.
The new loan is secured by an industrial land parcel under the name of Changmao Dalian (certificate number: Liao (2021) Dalian Changxing Island Real Estate No. 06900014) and 30 buildings, as well as the buildings and land under the name of Shanghai Changmao Biochemical Engineering Co., Ltd. The annual interest rate is the five-year-plus Loan Prime Rate (LPR) published by the National Interbank Funding Center on the business day immediately preceding the effective date of the contract, minus 0.5%, adjusted every 12 months thereafter. Repayment runs over ten years from April 2027 in 20 semi-annual instalments: RMB1.795 million for each of the first 10 instalments, RMB3.58 million for the 11th to 14th, RMB8.94 million for the 15th to 18th, RMB12.515 million for the 19th and RMB12.455 million for the final instalment. In addition, the banks may declare the loan immediately due if, on a consolidated basis, net operating cash flow is negative in any year during the loan term, or the year-end debt-to-asset ratio exceeds 65%. The company said the arrangement gives it 10-year financing to replace part of its short-term borrowings, thereby improving the group's liquidity and overall financial position.
