China Jinmao flags RMB819.00 million shareholder loan exposure as continuing connected transaction

Bulletin Express04-22

China Jinmao Holdings Group Limited announced that the loan framework entered on 31 March 2025 between its 50%-owned subsidiary Xi’an Huimao Real Estate and Huimao’s three shareholders—Xi’an Xiangmao (30%), Qujiang Holdings (20%) and Shaanxi Local Power Aerospace Real Estate (50%)—has been re-classified as a continuing connected transaction under Chapter 14A of the Hong Kong Listing Rules.

The change follows the publication of China Jinmao’s FY 2025 results on 24 March 2026, which showed Xi’an Huimao’s revenue and profit contribution each exceeded the 5 % threshold stipulated in Rule 14A.09, meaning Huimao is no longer an “insignificant subsidiary.” Consequently, Qujiang Holdings and Shaanxi Local Power Aerospace Real Estate have become connected persons at the subsidiary level.

Key terms of the Framework Agreement remain unchanged: • Loan tenor: up to three years (31 March 2025 – 30 March 2028). • Interest rate: one-year loan prime rate (LPR) ±50 %. • Interest payable quarterly; early repayment permitted at Huimao’s request. • Maximum daily loan balance (including accrued interest): RMB234.00 million to Qujiang Holdings and RMB585.00 million to Shaanxi Local Power Aerospace Real Estate, totalling RMB819.00 million.

The loans are advanced in proportion to each shareholder’s equity stake, and all commercial terms are identical for the three borrowers. China Jinmao’s board states that the arrangement optimises idle cash at Xi’an Huimao and reallocates capital to other group development projects, with funding sufficiency maintained for at least the next 12 months.

Under Rule 14A.60(1), China Jinmao must comply with annual review and disclosure requirements for the transaction, and will seek further approvals if the arrangement is renewed or amended. All directors, including independent non-executive directors, consider the terms fair, reasonable and in the interests of shareholders; no director abstained from voting on the resolution.

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