Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
CHTC FONG'S INTERNATIONAL COMPANY LIMITED 中 國 恒 天 立 信 國 際 有 限 公 司
(Incorporated in Bermuda with limited liability)
(Stock Code: 641)
DISCLOSEABLE TRANSACTION
IN RELATION TO THE FACTORING AGREEMENTS
On 7 May 2021 (after the market close), certain indirect wholly-owned subsidiaries of the Company entered into the three non-recourse Factoring Agreements with Horizon Factoring, pursuant to which Horizon Factoring has agreed to provide accounts receivable factoring services in an aggregate principal sum of RMB49,334,388.14 (equivalent to approximately HK$58,708,000) to the subsidiaries of the Company in accordance with the terms and conditions of the Factoring Agreements. Each of the Factoring Agreements contains similar major terms to each other.
As the highest applicable percentage ratio in respect of the transactions contemplated under the Factoring Agreements (on an aggregate basis) exceeds 5% but is less than 25%, such transactions constitute a discloseable transaction of the Company and is therefore subject to the reporting and announcement requirements but is exempt from the shareholders' approval requirement under Chapter 14 of the Listing Rules.
- INTRODUCTION
The Board hereby announces that on 7 May 2021 (after the market close), certain indirect wholly-owned subsidiaries of the Company entered into the three non-recourse Factoring Agreements with Horizon Factoring, pursuant to which Horizon Factoring has agreed to provide accounts receivable factoring services in an aggregate principal sum of RMB49,334,388.14 (equivalent to approximately HK$58,708,000) to the subsidiaries of the Company in accordance with the terms and conditions of the Factoring Agreements. Each of the Factoring Agreements contains similar major terms to each other.
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II. THE FACTORING AGREEMENTS
Below is the summary of the principal terms and conditions of the Factoring Agreements, each of which contains similar major terms to each other.
- Factoring Agreement I
Date of agreement | 7 May 2021 |
Parties | (i) Horizon Factoring (as factor); |
(ii) Tycon Alloy (Shenzhen) (as seller); and | |
(iii) FNE (Shenzhen) (as debtor) | |
Transfer of accounts | Horizon Factoring has agreed to provide accounts |
receivable | receivable factoring services in the principal amount |
of RMB27,784,698.41 (equivalent to approximately | |
HK$33,064,000) to Tycon Alloy (Shenzhen) in | |
accordance with the terms and conditions of the | |
Factoring Agreement I | |
Type of financing | Non-recourse, i.e. if FNE (Shenzhen) fails to pay any |
amounts due to Horizon Factoring under the Factoring | |
Agreement I owing to credit reasons, Horizon | |
Factoring has no right to claim any outstanding amount | |
from Tycon Alloy (Shenzhen) | |
Financing term | 2 years from the date of signing of the Factoring |
Agreement I | |
Handling fee I | RMB30,000 (equivalent to approximately HK$35,700) |
payable by FNE (Shenzhen) to Horizon Factoring | |
within 3 working days after the signing of the | |
Factoring Agreement I |
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Handling fee II | RMB1,844,209.36 (equivalent to approximately |
HK$2,195,000) which is calculated at the interest | |
rate of 5.9% per annum on the outstanding factoring | |
principal amount and shall be payable by FNE | |
(Shenzhen) to Horizon Factoring by 8 quarterly | |
instalments | |
Repayment of the | RMB27,784,698.41 (equivalent to approximately |
factoring principal | HK$33,064,000) repayable by FNE (Shenzhen) to |
amount | Horizon Factoring by 8 equal quarterly instalments |
of RMB3,473,087.30 (equivalent to approximately | |
HK$4,133,000) | |
Guarantors | FNE (Guangdong), FNE (Shenzhen), MF (Zhongshan) |
and Tycon Alloy (Zhongshan) |
- Factoring Agreement II
Date of agreement | 7 May 2021 |
Parties | (i) Horizon Factoring (as factor); |
(ii) Tycon Alloy (Zhongshan) (as seller); and | |
(iii) Tycon Alloy (Shenzhen) (as debtor) | |
Transfer of accounts | Horizon Factoring has agreed to provide accounts |
receivable | receivable factoring services in the principal amount |
of RMB13,927,668.90 (equivalent to approximately | |
HK$16,574,000) to Tycon Alloy (Zhongshan) in | |
accordance with the terms and conditions of the | |
Factoring Agreement II | |
Type of financing | Non-recourse, i.e. if Tycon Alloy (Shenzhen) fails |
to pay any amounts due to Horizon Factoring | |
under the Factoring Agreement II owing to credit | |
reasons, Horizon Factoring has no right to claim any | |
outstanding amount from Tycon Alloy (Zhongshan) |
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Financing term | 2 years from the date of signing of the Factoring |
Agreement II | |
Handling fee I | RMB30,000 (equivalent to approximately HK$35,700) |
payable by Tycon Alloy (Zhongshan) to Horizon | |
Factoring within 3 working days after the signing of | |
the Factoring Agreement II | |
Handling fee II | RMB924,449.04 (equivalent to approximately |
HK$1,100,000) which is calculated at the interest | |
rate of 5.9% per annum on the outstanding factoring | |
principal amount and shall be payable by Tycon | |
Alloy (Shenzhen) to Horizon Factoring by 8 quarterly | |
instalments | |
Repayment of the | RMB13,927,668.90 (equivalent to approximately |
factoring principal | HK$16,574,000) repayable by Tycon Alloy (Shenzhen) |
amount | to Horizon Factoring by 8 equal quarterly instalments |
of RMB1,740,958.61 (equivalent to approximately | |
HK$2,072,000). | |
Guarantors | FNE (Guangdong), FNE (Shenzhen), MF (Zhongshan) |
and Tycon Alloy (Shenzhen) |
- Factoring Agreement III
Date of agreement | 7 May 2021 |
Parties | (i) Horizon Factoring (as factor); |
(ii) FNE (Shenzhen) (as seller); and | |
(iii) FNE (Guangdong) (as debtor) | |
Transfer of accounts | Horizon Factoring has agreed to provide accounts |
receivable | receivable factoring services in the principal amount |
of RMB7,622,020.83 (equivalent to approximately | |
HK$9,070,000) to FNE (Shenzhen) in accordance with | |
the terms and conditions of the Factoring Agreement | |
III |
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Type of financing | Non-recourse, i.e. if FNE (Guangdong) fails to pay any |
amounts due to Horizon Factoring under the Factoring | |
Agreement III owing to credit reasons, Horizon | |
Factoring has no right to claim any outstanding amount | |
from FNE (Shenzhen) | |
Financing term | 2 years from the date of signing of the Factoring |
Agreement III | |
Handling fee I | RMB20,000 (equivalent to approximately HK$23,800) |
payable by FNE (Guangdong) to Horizon Factoring | |
within 3 working days after the signing of the | |
Factoring Agreement III | |
Handling fee II | RMB505,911.63 (equivalent to approximately |
HK$602,000) which is calculated at the interest rate of | |
5.9% per annum on the outstanding factoring principal | |
amount and shall be payable by FNE (Guangdong) to | |
Horizon Factoring by 8 quarterly instalments | |
Repayment of the | RMB7,622,020.83 (equivalent to approximately |
factoring principal | HK$9,070,000) repayable by FNE (Guangdong) to |
amount | Horizon Factoring by 8 equal quarterly instalments |
of RMB952,752.60 (equivalent to approximately | |
HK$1,134,000). | |
Guarantors | FNE (Guangdong), MF (Zhongshan), Tycon Alloy |
(Shenzhen) and Tycon Alloy (Zhongshan) |
Guarantee
Each of the guarantors shall provide a joint and several irrevocable guarantee in favour of Horizon Factoring in respect of the outstanding factoring principal amount, handling fees and default payment payable by the debtor to Horizon Factoring under the respective Factoring Agreements.
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CHTC Fong's International Company Limited published this content on 10 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 May 2021 08:06:08 UTC.