Gelonghui June 13th 丨Huaxin Real Estate Finance (00252.HK) announced that on June 13, 2023, Huaguo Hotel Properties Limited (a subsidiary of the Company) entered into a loan contract with a bank (the “lender”) as the borrower (the “Borrower”) and Huaguo Hotel Management Co., Ltd. (a subsidiary of the Company) and the company as the guarantor. According to this, the lender has granted the borrower a term credit with a maximum principal amount of HK$313.2 million. The credit period is 30 months from the date of initial loan withdrawal or six months after the issuance of the hotel licence (whichever is earlier). The credit will be used to refinance borrowers' existing debts and finance construction costs and professional expenses for Huaguo hotel modifications and additions.

According to the loan contract, the borrower has promised to ensure that Cai Naiduan, the controlling shareholder of the company, is the largest single shareholder of the company. Otherwise, the credit will be cancelled, and all debts owed by the borrower to the lender under the loan contract (including principal, accrued interest and all other accruals) to the lender will be due and paid immediately.