[Caihua News] Puhui Zhongjin International (00997.HK) announced that Puhui Zhongjin guarantee (Shaanxi Puhui Zhongjin financing guarantee Co., Ltd., a non-wholly-owned subsidiary) (as lender), the customer (Shaanxi Longyuan Landscape Engineering Co., Ltd., as borrower) and administrative agent (Xi'an Juhua Network Micro loan Co., Ltd.) entered into an entrustment loan extension agreement. The PRC guarantee agrees to extend the term of the entrusted loan with an principal amount of RMB 15 million (equivalent to approximately HK $18.05 million) under the entrustment loan Agreement for a period of 12 months (from September 28, 2021 to September 28, 2022). The administrative agent will act as a management agent to monitor the customer's timely repayment of the entrusted loan, but does not bear any risks associated with the entrusted loan. The management fee payable to the administrative agent shall be borne by the customer. Within 12 months immediately prior to the conclusion of the principal loan extension agreement, the Group has entered into a previous transaction with the customer.

PCCICC guarantees that it will charge the customer an interest rate of 7% per annum, which will be paid on September 28, 2022.

The entrustment loan extension agreement is entered into in the day-to-day and general course of business of the Group. The terms of the entrustment loan rollover agreement are determined by the PCCC guarantee in consultation with the customer on an equitable basis and with reference to the current market level and terms of similar entrusted loan arrangements provided to the client under the influence of the 2019 coronavirus outbreak.