Huabang Financial : DISCLOSEABLE TRANSACTION IN RELATION TO PROVISION OF LOAN

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(Incorporated in the Cayman Islands with limited liability)

(Stock code: 3638) DISCLOSEABLE TRANSACTION IN RELATION TO PROVISION OF LOAN THE LOAN AGREEMENT

On 1 September 2017 (after trading hours), the Lender, an indirect wholly-owned subsidiary of the Company, entered into Loan Agreement A, Loan Agreement B and Loan Agreement C with Borrower A, Borrower B and Borrower C, pursuant to which the Lender has agreed to renew Loan A, Loan B and Loan C for a term of further 12 months.

THE LISTING RULES IMPLICATIONS

As one or certain of the applicable percentage ratios (as defined under the Listing Rules) in respect of the renewed Loan A, Loan B and Loan C exceeds 5% but all of them are less than 25%, each of the Loan Agreement A, Loan Agreement B and Loan Agreement C constitute a discloseable transaction of the Company and is subject to reporting and announcement requirements under Chapter 14 of the Listing Rules.

INTRODUCTION

The Board announces that on 1 September 2017, Loan Agreement A, Loan Agreement B and Loan Agreement C were entered into between the Lender, an indirect wholly-owned subsidiary of the Company and Borrower A, Borrower B and Borrower C, respectively. Pursuant to Loan Agreement A, Loan Agreement B and Loan Agreement C, the Lender has agreed to renew Loan A, Loan B and Loan C with Borrower A, Borrower B and Borrower C respectively for a term of a further 12 months.

Summarised below are the principal terms of Loan Agreement A, Loan Agreement B and Loan Agreement C.

LOAN AGREEMENT A

Date : 1 September 2017

Parties : (i) Huabang Finance Limited, an indirect wholly-owned subsidiary of the Company; and

(ii) Borrower A, an Independent Third Party. Principal amount : Hong Kong dollars seven million (HK$7,000,000). Interest rate : 15% per annum (to be paid every 6 months)

Maturity date : 12 months from the date of Loan Agreement A.

Repayment : Unless otherwise specified, Borrower A shall repay in full the principal amount of Loan A, together with interest accrued and unpaid thereof on the maturity date of Loan A.

Early repayment : Loan A shall become repayable by Borrower A upon notice

by the Lender if Borrower A has been in breach of any applicable laws or regulations in any jurisdictions in respect of the borrowing and execution of Loan A.

The parties may request for early repayment of the whole or any part of the principal amount outstanding under Loan A, together with interest accrued and unpaid thereof.

LOAN AGREEMENT B

Date : 1 September 2017

Parties : (i) Huabang Finance Limited, an indirect wholly-owned subsidiary of the Company; and

(ii) Borrower B, an Independent Third Party.

Principal amount : Hong Kong dollars nine million and six hundred thousand

(HK$9,600,000).

Interest rate : 15% per annum (to be paid every 6 months)

Maturity date : 12 months from the date of Loan Agreement B.

Repayment : Unless otherwise specified, Borrower B shall repay in full the principal amount of Loan B, together with interest accrued and unpaid thereof on the maturity date of Loan B.

Early repayment : Loan B shall become repayable by Borrower B upon notice

by the Lender if Borrower B has been in breach of any applicable laws or regulations in any jurisdictions in respect of the borrowing and execution of Loan B.

The parties may request for early repayment of the whole or any part of the principal amount outstanding under Loan B, together with interest accrued and unpaid thereof.

LOAN AGREEMENT C

Date : 1 September 2017

Parties : (i) Huabang Finance Limited, an indirect wholly-owned subsidiary of the Company; and

(ii) Borrower C, an Independent Third Party.

Principal amount : Hong Kong dollars nine million and eight hundred thousand

(HK$9,800,000).

Interest rate : 15% per annum (to be paid every 6 months)

Maturity date : 12 months from the date of Loan Agreement C.

Repayment : Unless otherwise specified, Borrower C shall repay in full the principal amount of Loan C, together with interest accrued and unpaid thereof on the maturity date of Loan C.

Early repayment : Loan C shall become repayable by Borrower C upon notice

by the Lender if Borrower C has been in breach of any applicable laws or regulations in any jurisdictions in respect of the borrowing and execution of Loan C.

The parties may request for early repayment of the whole or any part of the principal amount outstanding under Loan C, together with interest accrued and unpaid thereof.

INFORMATION ABOUT THE COMPANY AND THE LENDER

The Group is principally engaged in the financial services business and computer and peripheral products business.

The Lender is an indirect wholly-owned subsidiary of the Company and a licensed money lender in Hong Kong under the Money Lenders Ordinance (Chapter 163 of the Laws of Hong Kong).

REASONS FOR AND BENEFITS OF LOAN A, LOAN B AND LOAN C

The Lender extended the original loan to the Borrower A on 27 August 2016, the original loan to the Borrower B on 29 August 2016 and the original loan to the Borrower C on 30 August 2016 in its ordinary course of business. The maturity dates of the original loan to Borrower A, Borrower B and Borrower C fell on 26 August 2017, 28 August 2017 and 29 August 2017 respectively. Loan Agreement A, Loan Agreement B and Loan Agreement C were entered into to renew the original loan to Borrower A, Borrower B and Borrower C respectively.

The terms of Loan Agreement A, Loan Agreement B and Loan Agreement C (including the interest rate) were arrived at after arm's length negotiations between the Lender and Borrower A, Borrower B and Borrower C respectively and would enable the Lender to earn interest income. Given that the provision of credit financing is in the ordinary and usual course of business of the Lender, the Directors are of the view that the transactions contemplated under Loan Agreement A, Loan Agreement B and Loan Agreement C are in the interests of the Company and the Shareholders as a whole.

LISTING RULES IMPLICATIONS

As one or certain of the applicable percentage ratios stipulated under Rule 14.07 of the Listing Rules in respect of each of Loan A, Loan B and Loan C, exceed 5% but are less than 25%, each of Loan A, Loan B and Loan C constitute a discloseable transaction of the Company and is subject to reporting and announcement requirements under Chapter 14 of the Listing Rules.

DEFINITIONS

Unless the context requires otherwise, the following terms have the following meanings in this announcement:

"Board" board of the Directors of the Company

"Borrower A" Borrower A, being an individual and an Independent Third Party "Borrower B" Borrower B, being an individual and an Independent Third Party "Borrower C" Borrower C, being an individual and an Independent Third Party