Zitong Financial App NewsletterShangri-La (Asia) (00069)According to the announcement, on October 4, 2021, Myanmar Company An and Myanmar Company B (both non-wholly-owned subsidiaries of the company) entered into a cash advance agreement. Myanmar Company A will provide loans to Myanmar Company B with a maximum loan amount of US $5 million with an annual interest rate of 4%.

Myanmar Company B is the owner and operator of Shangri-La Hotel in Rangoon, a hotel located in Myanmar. As the 2019 coronavirus pandemic had a serious and sustained impact on the hotel business of Myanmar Company B, Myanmar Company B sought an intra-group loan from Myanmar Company A through a cash advance agreement.

The loan is financed by the cash surplus of Burmese company A. The loan will be used by Myanmar Company B to meet its working capital needs.

The Board is of the view that the Group can mobilize the cash surplus of its Myanmar operations through cash advance agreements and make better use of the funds in its Myanmar projects. This is conducive to the operation of Myanmar Company B in Shangri-La Hotel in Yangon and avoids the loan interest burden that Myanmar Company B has to pay to external financial institutions.