Gelonghui, May 14 | Huayin International Holdings (00989.HK) announced that on April 25, 2024, the company entered into a loan capitalization agreement with the subscriber. According to this, the company conditionally agreed to distribute and issue to the subscribers and the subscribers conditionally agreed to subscribe for a total of 5,060 billion capitalized shares. The capitalized share was HK$0.05 per share, with a total cost of HK$253 million. The total capitalized price of all capitalized shares payable by the subscriber will be paid by fully capitalizing and offsetting the loan on an equal basis upon completion of the loan capitalization agreement. On the date of the announcement, the ultimate beneficial owners of the subscriber were (i) Choi Min-dong, a non-executive director and father of Choi Sin-tung; and (ii) Chai Xiu, the spouse of Choi Min-dong and mother of Choi Sin-tung.
According to the loan capitalization agreement, the subscribers will subscribe for a total of 5,060 billion capitalized shares. Assuming that there is no change in the company's issued share capital other than the allocation and issuance of capitalized shares, the total shares in the concerted action group will increase from 22.30 shares (accounting for about 30.95% of the issued shares on the date of announcement) to 7.290 billion shares (accounting for about 59.45% of the issued shares expanded by allocating and issuing capitalized shares immediately after completion of proposed transactions under the loan capitalization agreement).
On the date of the announcement, Jilin Rongyu, an indirect wholly-owned subsidiary of the company, owed Guangze Investment Holdings about RMB 230 million (equivalent to approximately HK$253 million) for the loan. The loan is unsecured, interest-free, and payable on or before February 58, 2025. The loan was provided by Guangze Investment Holdings to Jilin Rongyu to meet the Group's general working capital requirements and was mainly used to repay the Group's bank loans and financial costs.
Furthermore, the company has applied to the Stock Exchange to resume trading of shares starting at 1:00 p.m. on May 14, 2024.