According to the Zhitong Finance App, Shuntai Holdings (01335) announced that on August 4, 2023, the lender Shenzhen Shuntai New Energy Technology (a direct wholly-owned subsidiary of the company) and the borrower Shenzhen Global Greenland New Materials entered into a financing loan agreement. The lender agreed to provide a loan of RMB 50 million to the borrower in accordance with its terms and conditions.

The terms of a financing loan agreement (including applicable interest rates) are determined by the lender and borrower through fair negotiation after considering current market interest rates and practices. The lender has taken into account the borrowing cost of providing the loan to the borrower when entering into the financing loan agreement; and the right to convert and subscribe under the financing loan agreement. In particular, when the borrower's business development momentum is good, the company can voluntarily convert the loan principal amount into the borrower's common stock, thereby bringing additional income to the company. In light of the foregoing, the director believes that the terms of the financing loan agreement are in accordance with general commercial terms and that the transaction is fair and reasonable and is in the overall interests of the company and its shareholders.