Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Hong Kong
  4. Hong Kong Stock Exchange
  5. China Glass Holdings Limited
  6. News
  7. Summary
    3300   BMG2111H1236

CHINA GLASS HOLDINGS LIMITED

(3300)
  Report
SummaryChartsNewsCalendarCompanyFinancials 
SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector news

China Glass : CONNECTED TRANSACTION - PROVISION OF FINANCIAL ASSISTANCE TO A JOINT VENTURE COMPANY

09/14/2020 | 04:45am EDT

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.

CHINA GLASS HOLDINGS LIMITED

中 國 玻 璃 控 股 有 限 公 司 *

(Incorporated in Bermuda with limited liability)

(Stock Code: 3300)

CONNECTED TRANSACTION

PROVISION OF FINANCIAL ASSISTANCE TO A

JOINT VENTURE COMPANY

PROVISION OF FINANCIAL ASSISTANCE TO THE JV COMPANY

On 14 September 2020, CNG International (as the lender) entered into the Credit Agreement with the JV Company (as the borrower), pursuant to which CNG International agreed to provide the Loan to the JV Company in the amount of up to US$3.6 million at a fixed interest rate of 7% per annum.

LISTING RULES IMPLICATIONS

Hony Group Management holds 45% equity interest of the JV Company. Hony Group Management is controlled by Legend Holdings Corporation, a substantial Shareholder which indirectly holds approximately 22.80% equity interest of the Company. Therefore, the JV Company is a connected person of the Company pursuant to the Listing Rules. Accordingly, the Credit Agreement constitutes a connected transaction for the Company under Chapter 14A of the Listing Rules.

As one or more of the applicable percentage ratios in respect of the Credit Agreement exceed 0.1% but all are less than 5%, the Credit Agreement is subject to the announcement and annual reporting requirements but are exempted from independent Shareholders' approval requirement under Chapter 14A of the Listing Rules.

1

PROVISION OF FINANCIAL ASSISTANCE TO THE JV COMPANY

On 14 September 2020, CNG International (as the lender) entered into the Credit Agreement with the JV Company (as the borrower), pursuant to which CNG International agreed to provide the Loan to the JV Company in the amount of up to US$3.6 million at a fixed interest rate of 7% per annum.

Credit Agreement

The principal terms of the Credit Agreement are set out below:

Date:

14 September 2020

Parties:

(1) CNG International (as the lender); and

(2) JV Company (as the borrower).

Principal amount:

a non-revolving loan in the amount of up to US$3.6

million

Purpose:

mainly for potential equity acquisitions and other

liquidity requirements of the Kazakhstan Project

Loan period:

a period of one year from the draw down date

Interest:

at a fixed rate of 7% per annum, calculated on a daily

basis and payable at the end of the term or on any early

repayment date

Repayment:

the Loan can be repaid in advance or be extended by

written agreement by both parties

2

REASONS FOR AND BENEFITS OF THE CREDIT AGREEMENT

The Group has been actively seeking to expand its glass production businesses outside of the PRC to leverage on the advantages and opportunities resulting from the "Belt and Road" initiative of the PRC. The Kazakhstan Project under the JV Company has been one of the main overseas projects of the Group. The construction process of the Kazakhstan Project has reached the final stage and the ignition of the Kazakhstan Project is scheduled to take place in 2021. The Loan will support the Kazakhstan Project if it requires additional working capital in preparation for the ignition process and provide additional investment capital to the JV Company for potential further consolidation of its shareholding in the Kazakhstan Project, both of which will enhance the Group's chance to leverage from the opportunities from the Kazakhstan Project.

DISCLOSURE OF DIRECTORS' INTERESTS

Mr. Zhao John Huan ("Mr. Zhao"), a Non-executive Director of the Company, is a director of Hony Group Management and a non-executive director of Legend Holdings Corporation (a substantial Shareholder). Although Mr. Zhao has no material interest in the Credit Agreement, he has abstained from voting in the relevant resolutions approving the above agreement for better corporate governance practice.

The Directors (including the Independent Non-executive Directors and except for Mr. Zhao) are of the view that the Credit Agreement is in the ordinary and usual course of business of the Group, and in the interests of the Company and the Shareholders as a whole; and the terms and conditions of the Credit Agreement are on normal commercial terms, fair and reasonable.

3

INFORMATION ABOUT THE RELEVANT PARTIES

The Company and the Group

The Company is an investment holding company. The Group is one of China's leading manufacturers of flat glass, specialised in the research and development, manufacturing and selling of a variety of building coated glass, energy-efficient and environmental- friendly glass and new-energy products, in which it occupies a leading technological position.

CNG International is a direct wholly-owned subsidiary of the Company. CNG International is a limited liability company incorporated in Hong Kong and is principally engaged in investment holding.

JV Company

The JV Company is a company incorporated under the laws of Cayman Islands with limited liability and is held by CNG International, Hony Group Management and Victon Holdings Corporation Limited ("Victon Holdings") as to 45%, 45% and 10% equity interests respectively. The JV Company is the general partner of the Belt and Road Glass Industry Integration Fund L.P., which in turn indirectly holds a 69.7% equity interest in the Kazakhstan Project.

Hony Group Management and Victon Holdings

Hony Group Management is controlled by Legend Holdings Corporation, a company listed on the main board of the Stock Exchange (Stock Code: 3396) and a substantial Shareholder which indirectly holds approximately 22.80% equity interest of the Company. Hony Group Management holds 45% equity interest of the JV Company. It is principally engaged in investment holding and asset management. Victon Holdings is a wholly-owned subsidiary of CNIC Corporation Limited, a PRC state-owned enterprise.

4

LISTING RULES IMPLICATIONS

Hony Group Management holds 45% equity interest of the JV Company. Hony Group Management is controlled by Legend Holdings Corporation, a substantial Shareholder which indirectly holds approximately 22.80% equity interest of the Company. Therefore, the JV Company is a connected person of the Company pursuant to the Listing Rules. Accordingly, the Credit Agreement constitutes a connected transaction for the Company under Chapter 14A of the Listing Rules.

As one or more of the applicable percentage ratios in respect of the Credit Agreement exceed 0.1% but all are less than 5%, the Credit Agreement is subject to the announcement and annual reporting requirements but are exempted from independent Shareholders' approval requirement under Chapter 14A of the Listing Rules.

DEFINITIONS

In this announcement, unless the context otherwise requires, the following expressions shall have the following meanings when used herein:

"Board"

"CNG International"

"Company"

the board of Directors

CNG International Investment Limited(中玻國際投資 有限公司), a company incorporated under the laws of Hong Kong with limited liability and a direct wholly- owned subsidiary of the Company

China Glass Holdings Limited(中國玻璃控股有限公 司)*, an exempted company incorporated in Bermuda with limited liability and the Shares of which are listed on the main board of the Stock Exchange (Stock Code: 3300)

5

"Credit Agreement"

"Director(s)" "Group"

"Hony Group Management"

"HK$"

"Hong Kong" "JV Company"

"Kazakhstan Project"

the credit agreement dated 14 September 2020 entered into between CNG International and the JV Company in relation to the provision of the Loan to the JV Company

the director(s) of the Company

the Company and its subsidiaries

Hony Group Management Limited, a company incorporated under the laws of Cayman Islands with limited liability, is controlled by Legend Holdings Corporation, a substantial Shareholder which indirectly holds approximately 22.80% equity interest of the Company

Hong Kong dollars, the lawful currency of Hong Kong

Hong Kong Special Administrative Region of the PRC

Belt and Road Glass Management Limited, a company incorporated under the laws of Cayman Islands with limited liability, is held by CNG International, Hony Group Management and Victon Holdings Corporation Limited as to 45%, 45% and 10% equity interests respectively.

the construction project of a float glass manufacturing line with an expected capacity of 197,100 tons per year in Kyzylorda, Kazakhstan

6

"Listing Rules"

"Loan"

"PRC"

"Shareholder(s)" "Share(s)"

"Stock Exchange" "US$"

"%"

the Rules Governing the Listing of Securities on the Stock Exchange

  1. non-revolvingone-year term loan in the amount of up to US$3.6 million provided by CNG International to the JV Company pursuant to the Credit Agreement

The People's Republic of China (excluding, for the purpose of this announcement, Hong Kong, Macau Special Administrative Region of the PRC and Taiwan)

the holder(s) of the Share(s) from time to time

ordinary share(s) of par value HK$0.05 each in the issued share capital of the Company

The Stock Exchange of Hong Kong Limited

United States dollars, the lawful currency of the United States of America

per cent.

7

In this announcement, unless the context requires otherwise, the terms "connected person(s)", "connected transaction(s) ", "percentage ratio(s) ", "substantial shareholder(s)" and "subsidiary(ies)", shall have the meaning given to such terms in the Listing Rules.

By Order of the Board

China Glass Holdings Limited

Cui Xiangdong

Executive Director

Hong Kong, 14 September 2020

As at the date of this announcement, the directors of the Company are as follows:

Executive Director:

Mr. Cui Xiangdong

Non-executive Directors:

Mr. Peng Shou (Chairman) ; Mr. Zhao John Huan; Mr. Zhou Cheng (Honorary Chairman) ; and Mr. Zhang Jinshu

Independent Non-executive Directors:

Mr. Zhang Baiheng; Mr. Zhao Lihua; and Mr. Chen Huachen

  • For identification purpose only

8

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

China Glass Holdings Limited published this content on 14 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 September 2020 08:44:02 UTC


ę Publicnow 2020
All news about CHINA GLASS HOLDINGS LIMITED
05/21CHINA GLASSá : to Build Photovoltaic Glass Production Base in Jiangsu Province
MT
05/06CHINA GLASSá : to Buy Controlling Stake in Glass Producer for Nearly $41 Million..
MT
04/29CHINA GLASSá : Connected transaction - provision of financial assistance to a jo..
PU
04/26CHINA GLASSá : Proposed re-election of retiring directors and proposed granting ..
PU
04/20CHINA GLASS'á : Unit to Form Joint Venture Firm in China with Suqian Bochen Asse..
MT
04/19CHINA GLASSá : Discloseable transaction - formation of joint venture company
PU
04/19CHINA GLASSá : Operational update for the three months ended 31 march 2021
PU
04/19CHINA GLASSá : Sales Surge 73% in Q1 as Demand Rises; Shares Jump 9%
MT
04/08CHINA GLASSá : Grant of waiver and extension of time for appointment of independ..
PU
03/22CHINA GLASSá : Extension of time for appointment of independent non-executive di..
PU
More news
Financials
Sales 2020 3 159 M 494 M 494 M
Net income 2020 -84,7 M -13,2 M -13,2 M
Net Debt 2020 2 684 M 420 M 420 M
P/E ratio 2020 -17,8x
Yield 2020 -
Capitalization 2 477 M 387 M 387 M
EV / Sales 2019 1,44x
EV / Sales 2020 1,28x
Nbr of Employees 3 391
Free-Float 51,7%
Chart CHINA GLASS HOLDINGS LIMITED
Duration : Period :
China Glass Holdings Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends CHINA GLASS HOLDINGS LIMITED
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Managers and Directors
NameTitle
Guo Lu Chief Executive Officer & Executive Director
Li Ming Han Chief Finance Officer
Shou Peng Chairman
Jian Xun Wang Chief Technology Officer
Bai Heng Zhang Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
CHINA GLASS HOLDINGS LIMITED84.44%387
SAINT-GOBAIN51.36%36 389
ASSA ABLOY AB27.90%34 562
XINYI GLASS HOLDINGS LIMITED39.26%15 744
MASCO CORPORATION6.95%14 610
FORTUNE BRANDS HOME & SECURITY, INC.15.13%13 678