Sinco Pharmaceuticals Holdings Limited (Sinco Pharma) has amended the payment schedule of its existing guarantee arrangement with controlling shareholder and former chairman Mr. Huang Xiangbin. According to a side letter signed on 22 June 2026, the Guarantee Fees payable to Mr. Huang—capped at RMB15.00 million (approximately HK$17.40 million) per year—will now be settled quarterly instead of annually.
The guarantee, originally agreed on 30 September 2024, obliges Mr. Huang to provide personal guarantees for the Group’s banking facilities through to 30 September 2027. Under the revised structure, Sinco Pharma will clear any accrued fees up to 30 June 2026 in a lump-sum payment on that date, while the first quarterly instalment covering 1 July–30 September 2026 becomes due on 30 September 2026. Subsequent payments will be made at each quarter-end.
Management cited two primary benefits for the change: more frequent monitoring of guarantee exposure and improved alignment of fee outflows with the Group’s interest payments, loan amortisation schedules, and covenant assessments. The board concluded that the revised timetable is in the interest of both the Company and its shareholders.
Because Mr. Huang holds approximately 51.65% of Sinco Pharma’s issued share capital, the transaction is classified as a continuing connected transaction under Chapter 14A of the Hong Kong Listing Rules. All applicable percentage ratios for the annual caps exceed 0.1% but remain below 5%, triggering mandatory reporting, announcement, and annual review requirements while exempting the deal from independent shareholders’ approval. Director Mr. Huang Zhijian, son of Mr. Huang, abstained from voting on the board resolution approving the side letter; no other directors were required to abstain.
Shareholders and prospective investors are advised to exercise caution when dealing in Sinco Pharma’s shares following this announcement dated 22 June 2026.
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