[Caihua News] Fudao Group (03848-HK) announced that on September 26, 2019, Fudao Leasing entered into a non-compliance environmental protection quota agreement with customer E, that is, a factoring quota agreement. According to this, Fudao Leasing agreed to provide customer E with a total factoring financing amount of up to RMB 50 million (equivalent to about HK$55.1 million) for a period of 6 months from the day the factoring quota agreement was signed.

On September 26, 2019, Fudao Leasing entered into a factoring agreement with Client E. Based on this, Fudao Leasing agreed to provide financing secured by Client E's accounts receivable for a period of 6 months from the day the factoring agreement was signed. The factoring principal amount under the factoring quota agreement mentioned above is RMB 50 million (equivalent to approximately HK$55.1 million).

The directors believe that the agreement was made in the day-to-day and general course of business of Fudao Leasing, and that the factoring interest received will bring revenue and cash flow. The providers under the factoring quota agreement and the new factoring agreement will be funded from the group's internal resources.