Zhitong Finance App News, Zhicheng Development Holdings (08268) issued an announcement. After the trading session on March 11, 2024, the lender Huanghe Consulting Service Co., Ltd. (an indirect wholly-owned subsidiary of the company) signed a supplementary loan agreement with the borrower Volcano Yidong International Holdings Co., Ltd. Based on this, the lender agreed to renew the loan amount of HK$8 million to the borrower at an annual interest rate of 12%, which must be repaid on August 15, 2025.

The lender (an indirect wholly-owned subsidiary of the company) is a registered money lender holding a valid money lender license under the Money Lenders Ordinance (Chapter 163 of the Laws of Hong Kong), and is mainly engaged in money lending services. Transactions involving the issuance of loans to borrowers under loan agreements and renewal of loans under supplementary loan agreements as part of the Group's general and day-to-day business activities. Loans are disbursed from within the Group's internal resources.

The director believes that since the lender already has the advantage of understanding the borrower's background, establishing customer relationships with them, and signing legal documents, the credit evaluation process for the borrower's renewal of a loan is simpler, faster, and more cost-effective than issuing a new loan to a new customer.