[Caihua Social News] Gao Yin Finance (00530-HK), which recently got into financial difficulties, was rescued by the white samurai of 01113-HK. Gao Yin Financial announced yesterday that Ma Lizhi, now a member of the Executive Committee and general manager of the Corporate Business Development Department, has been appointed as the vice chairman and independent non-executive director of the group, effective July 23.

Ma Lizhi will mainly provide financial and restructuring consulting assistance to Gao Yin. The source said that Changshi took the initiative to help Gaoyin and sent personnel to assist Gaoyin in debt and financial restructuring, and did not rule out the possibility that Changshi would have other cooperation with Gaoyin in the future.

Gao Yin Financial said that Ma Lizhi will mainly provide financial and restructuring consulting assistance to Gaoyin Financial Group. The announcement revealed that Ma Lizhi did not enter into any service contract with Gao Yin, but was entitled to receive 240000 yuan in annual remuneration from the company.

Ma Lizhi, 52, joined Cheung Kong Group in 1996. He is now a member of the executive committee of Changshi and general manager of corporate business development, a non-executive director of 00778-HK and 00808-HK, and an alternate director of Li Qiming, a non-executive director of Hutchison Telecom Hong Kong Holdings. As to whether Changshi intends to serve as a samurai to help Gao Yin tide over the difficulties. Ma Lizhi responded: "We will actively study Gaoyin's financial position and debt situation."

Changshi had business relations with Gaoyin as early as 2018. At that time, Gaoyin raised 10.2 billion yuan from Changshi in the form of a short-term mortgage at an interest rate of 8%. Deutsche Bank took the lead in taking over property financing last year.

Gao Yin has invested land at high prices many times in recent years. however, due to the reversal of the economic environment and the impact of the COVID-19 epidemic, the financial situation of the Group has deteriorated sharply since the cancellation of the Kai Tak commercial site last year, so it is not surprising to seek capital injection from outside. Recently, the Group has been involved in debt recovery, admitting that it received several notices on July 13 that its companies were required to repay their debts immediately, totaling 3.5 billion yuan with principal and interest. Gao Yin will seek 8.7 billion yuan of new financing and continue to promote the sale of site No. 4 in area 4B of Kai Tak to repay debts.

At the same time, on July 16, the Hong Kong Stock Exchange (00388-HK) disclosed interest information that Gaoyin shareholders mortgaged 28.18% of their shares to Industrial and Commercial Bank of China Macao on July 15, and the next day showed that LV Rongzi, chairman of Java Holdings (00251-HK), had acquired 7.51% of Gaoyin's guaranteed interest, and did not rule out the possibility that the relevant shares were pledged to Lu Rongzi, and that the shareholders of the two shares were likely to be Gaoyin major shareholder Pan Sutong. That means Pan mortgaged a total of 35.69% of its shares within two days, and his stake in Gaoyin is expected to fall to 35.17%. At the same time, data show that Pan Sutong made two and three clicks on his mansion at 75 Deep Water Bay Road a month ago and borrowed at least 600 million yuan from BoCom Hong Kong.

In order to solve the financial problem, Gao Yin held discussions with mortgage trustees and agents (Deutsche Bank Hong Kong Branch) as early as March this year to seek new financing and the sale of the Kai Tak site. The current market value of its Gaoyin Financial International Center ranges from 15 billion to 16.5 billion yuan, which is believed to have reflected the adverse factors of the epidemic. Although the rental value is expected to decline in the short term, compared with the principal and interest owed by bills and loans, the current market value of the office property still has a considerable balance.

The investment property currently held by Gao Yin is the Gao Yin Financial International Center, the redevelopment site of Hongtai Road Building, which has a 60% interest, is under development, while the Ho Man Tin residential project ao Coco and Ho Man Tin Station I are privately held by the chairman, Pan Sutong.