According to Zhitong Finance App, Honghai Hi-Tech Resources (00065) issued an announcement. On March 27, 2023, Hongyuan (a direct wholly-owned subsidiary of the company) signed a memorandum of understanding with the supplier. Hongyuan conditionally agreed to purchase on or before June 27, 2023, while the supplier conditionally agreed to supply coal worth no more than HK$200 million on or before June 27, 2023. A refundable goodwill deposit of HK$47 million was paid on March 30, 2023 in accordance with the terms of the Memorandum of Understanding to obtain priority trading rights for coal products.

On July 31, 2023, Hongyuan entered into a supplementary memorandum of understanding with the supplier to extend the expiration date to September 27, 2023, and the supplier agreed to refund goodwill money and accumulated interest when the supplementary memorandum of understanding expires.

The Group is mainly engaged in the production and marketing of coal and minerals. According to the Group's coal mining business, the Group requires customers to pay in advance before delivering the coal it has mined. As a result, the Board of Directors believes that the conclusion of the Memorandum of Understanding is part of the Group's business and is consistent with its day-to-day business practices, and that the refundable goodwill money paid from the supplier was then treated as a loan to an entity, and the company ignored the relevant situation at the time.

A supplementary memorandum of understanding involving the provision of interest was concluded on July 31, 2023. According to Chapter 14 of the Listing Rules, the supplementary memorandum of understanding was regarded as the Group providing financial support to suppliers at the time, and the Company ignored the relevant situation at the time.