Baiwang Co (06657) announced that on November 17, 2024, the company entered into a convertible loan agreement with Global Zhi Chain and Baiwang Overseas, under which the company agreed to provide a RMB 35 million convertible loan to Baiwang Overseas for a period of one year with an annual interest rate of 8%. If the amount is not repaid at maturity, it can be converted into equity in Baiwang Overseas.

Baiwang Overseas is a limited company registered in China on October 18, 2024, fully owned by Global Zhi Chain. It is expected to mainly engage in overseas businesses, including the localization, development, and sales of tax compliance products in countries and regions outside China, as well as the implementation, upgrading, and licensing of related technologies overseas in accordance with local foreign laws and regulations. As of the date of this announcement, Baiwang Overseas has not yet engaged in substantial business or entered into any agreements or arrangements (excluding convertible loans) regarding any potential business cooperation or transactions between the company and Baiwang Overseas.

The company is a leader and major participant in China’s saas finance and taxation digitalization industry. Although the company hopes to continue focusing on the domestic market and consolidate its leading position in China, it recognizes the immense growth potential of the finance and taxation digitalization industry in emerging overseas markets, given the increasing number of government initiatives globally aimed at promoting business digital transformation in finance and taxation management to drive economic growth and achieve effective management.