New Century Hong Kong : DISCLOSEABLE TRANSACTION - PROVISION OF FINANCIAL ASSISTANCE

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.

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(Incorporated in Bermuda with limited liability)

(Stock Code : 234)

DISCLOSEABLE TRANSACTION

PROVISION OF FINANCIAL ASSISTANCE

PROVISION OF FINANCIAL ASSISTANCE

The Board is pleased to announce that on 23 September 2020, the New Loan Agreements were entered into between ETC Finance, an indirect non-wholly owned subsidiary of the Company, as lender, and the Customer as borrower. Pursuant to the New Loan Agreements, ETC Finance granted two secured loans in the aggregate principal sum of HK$27,700,000 to the Customer for a term of 12 months.

Before entering into of the New Loan Agreements, ETC Finance has entered into the Previous Loan Agreements with the Customer for granting of two existing secured loans in the aggregate principal sum of HK$27,700,000 to the Customer for a term of 12 months. All the proceeds from the New Loans have been used to fully settle the outstanding principals of the Previous Loans.

LISTING RULES IMPLICATIONS

As certain applicable percentage ratios in respect of the New Loans are 5% or more but less than 25% under Rule 14.07 of the Listing Rules, the grant of the New Loans constitutes a discloseable transaction for the Company under Chapter 14 of the Listing Rules and is therefore subject to the reporting and announcement requirements under the Listing Rules.

* For identification purpose only

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PROVISION OF THE NEW LOANS

The Board is pleased to announce that on 23 September 2020, the New Loan Agreements were entered into between ETC Finance, an indirect non-wholly owned subsidiary of the Company, as lender, and the Customer as borrower. Pursuant to the New Loan Agreements, ETC Finance granted two secured loans in the aggregate principal amount of HK$27,700,000 to the Customer for a term of 12 months. The principal terms of the New Loan Agreements are set out below:

NEW LOAN AGREEMENTS
New Loan Agreement A
Date of agreement	:	23 September 2020
Lender	:	ETC Finance
Borrower	:	The Customer
Principal	:	HK$1,200,000
Interest rate	:	10.5% per annum
Repayment	:	Interest repayable by 12 monthly instalments with the
		principal repayable at the last instalment
Prepayment	:	The borrower may prepay to the lender all outstanding
		balance of the loan together with interest accrued by giving
		prior one month written notice to the lender
Security	:	A first legal charge in favour of the lender over a car
		parking space located in Happy Valley with valuation
		conducted by an independent professional property valuer
		on 23 September 2020 with an amount of approximately
		HK$2,000,000
New Loan Agreement B
Date of agreement	:	23 September 2020
Lender	:	ETC Finance
Borrower	:	The Customer

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Principal	:	HK$26,500,000
Interest rate	:	10.5% per annum
Repayment	:	Interest repayable by 12 monthly instalments with the
		principal repayable at the last instalment
Prepayment	:	The borrower may prepay to the lender all outstanding
		balance of the loan together with interest accrued by giving
		prior one month written notice to the lender
Security	:	A first legal charge in favour of the lender over a
		residential property and a car parking space located in
		Happy Valley with valuation conducted by an independent
		professional property valuer on 23 September 2020 with an
		aggregate amount of approximately HK$35,000,000

PROVISION OF THE PREVIOUS LOANS

Before entering into of the New Loan Agreements, ETC Finance has entered into the Previous Loan Agreements with the Customer for granting of two existing secured loans in the aggregate principal sum of HK$27,700,000 to the Customer for a term of 12 months. The principal terms of the Previous Loan Agreements are set out as follows:

PREVIOUS LOAN AGREEMENTS

Previous Loan Agreement A
Date of the agreement	:	31 July 2019
Lender	:	ETC Finance
Borrower	:	The Customer
Principal	:	HK$1,200,000
Interest rate	:	10.5% per annum
Repayment	:	Interest repayable by 12 monthly instalments with the
		principal repayable at the last instalment
Prepayment	:	The borrower may prepay to the lender all outstanding
		balance of the loan together with interest accrued by giving
		prior one month written notice to the lender

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Security	: A first legal charge	in favour of the	lender over a car
	parking space located in Happy Valley with valuation
	conducted by an independent professional property valuer
	on 23 July 2019	with an amount	of approximately
	HK$2,000,000

The outstanding principal of the Previous Loan Agreement A has been fully settled by the loan proceed drawn down under the New Loan Agreement A on 23 September 2020.

Previous Loan Agreement B
Date of the agreement	:	7 August 2019
Lender	:	ETC Finance
Borrower	:	The Customer
Principal	:	HK$26,500,000
Interest rate	:	10% per annum
Repayment	:	Interest repayable by 12 monthly instalments with the
		principal repayable at the last instalment
Prepayment	:	The borrower may prepay to the lender all outstanding
		balance of the loan together with interest accrued by giving
		prior one month written notice to the lender
Security	:	A first legal charge in favour of the lender over a
		residential property and a car parking space located in
		Happy Valley with valuation conducted by an independent
		professional property valuer on 23 July 2019 with an
		aggregate amount of approximately HK$38,000,000

The outstanding principal of the Previous Loan Agreement B has been fully settled by the loan proceed drawn down under the New Loan Agreement B on 23 September 2020.

FUNDING OF THE NEW LOANS

The Group will finance the New Loans with its general working capital. The proceeds from the New Loans have been used to fully settle the outstanding principals of the Previous Loans and there is no cash outflow from the Group as a result.

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INFORMATION ON THE CREDIT RISK RELATING TO THE NEW LOANS

The grant of the New Loans was based on the collaterals provided by the Customer, the credit assessments on the financial strength and repayment ability of the Customer, together with the relatively short term nature of the New Loans. After taking into account all such factors, the Directors consider that the risks involved in the New Loans are relatively low and manageable.

INFORMATION ON THE CUSTOMER

The Customer is an individual, a merchant and a repeated customer of ETC Finance with no default record. To the best of the Directors' knowledge, information and belief having made all reasonable enquiry, the Customer is a third party independent of the Company and its connected persons (as defined under the Listing Rules).

REASONS FOR AND BENEFITS OF ENTERING INTO THE NEW LOAN AGREEMENTS

The principal activities of the Group comprise the provision of money lending, cruise ship charter services, property investments and securities trading.

The terms of the New Loan Agreements (including the interest rate) were negotiated on an arm's length basis between ETC Finance and the Customer based on the credit policy of ETC Finance. Taking into account the financial background and repayment ability of the Customer, the Directors are of view that a stable revenue and cashflow stream from interest income is expected to be generated from the New Loans. The Directors consider and believe that the terms of the New Loan Agreements are fair and reasonable and the entering into of the New Loan Agreements is in the interests of the Company and its shareholders as a whole.

LISTING RULES IMPLICATIONS

As certain applicable percentage ratios in respect of the New Loans are 5% or more but less than 25% under Rule 14.07 of the Listing Rules, the grant of the New Loans constitutes a discloseable transaction for the Company under Chapter 14 of the Listing Rules and is therefore subject to the reporting and announcement requirements under the Listing Rules.

DEFINITIONS

In this announcement, the following expressions have the following meanings:

"Board"

The board of Directors

"Company"New Century Group Hong Kong Limited, a company incorporated in Bermuda with limited liability, whose shares are listed on the main board of the Stock Exchange with stock code 234

"Customer"Mr. Lui Kim Hung Joseph, the borrower under the New Loan Agreements and the Previous Loan Agreements

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"Directors"	the directors of the Company
"ETC Finance"	ETC Finance Limited, a company incorporated in Hong
	Kong with limited liability with money lenders licence
	registered under Money Lenders Ordinance (Chapter 163 of
	the Laws of Hong Kong), and is an indirectly non-wholly
	owned subsidiary of the Company
"Group"	the Company and its subsidiaries
"Hong Kong"	the Hong Kong Special Administrative Region of the
	People's Republic of China
"Listing Rules"	the Rules Governing the Listing of Securities on the Stock
	Exchange
"New Loans"	the mortgage loans in the principal sum of HK$1,200,000
	and HK$26,500,000 granted by ETC Finance to the
	Customer pursuant to New Loan Agreement A and New
	Loan Agreement B, respectively
"New Loan Agreements"	New Loan Agreement A and New Loan Agreement B
"New Loan Agreement A"	the loan agreement dated 23 September 2020 entered into
	between ETC Finance and the Customer, particulars of
	which are stated in the section headed "New Loan
	Agreement A" in this announcement
"New Loan Agreement B"	the loan agreement dated 23 September 2020 entered into
	between ETC Finance and the Customer, particulars of
	which are stated in the section headed "New Loan
	Agreement B" in this announcement
"Previous Loans"	the mortgage loans in the principal sum of HK$1,200,000
	and HK$26,500,000 granted by ETC Finance to the
	Customer pursuant to Previous Loan Agreement A and
	Previous Loan Agreement B, respectively
"Previous Loan Agreements"	Previous Loan Agreement A and Previous Loan Agreement B
"Previous Loan Agreement A"	the loan agreement dated 31 July 2019 entered into between
	ETC Finance and the Customer, particulars of which are
	stated in the section headed "Previous Loan Agreement A"
	in this announcement

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"Previous Loan Agreement B"	the loan agreement dated 7 August 2019 entered into
	between ETC Finance and the Customer, particulars of
	which are stated in the section headed "Previous Loan
	Agreement B" in this announcement
"Stock Exchange"	The Stock Exchange of Hong Kong Limited
"HK$"	Hong Kong dollars, the lawful currency of Hong Kong
"%"	per cent.

On behalf of the Board

Ng Wee Keat

Chairman

Hong Kong, 23 September 2020

As at the date of this announcement, the Board comprises Mr. Ng Wee Keat (Chairman), Ms. Sio Ion Kuan (Deputy Chairman), Ms. Ng Siew Lang, Linda (Chief Operating Officer), Ms. Lilian Ng, Ms. Chen Ka Chee and Mr. Yu Wai Man as executive directors and Mr. Cheung Chun Kwok, Mr. Kwan Kai Kin, Kenneth and Mr. Ho Yau Ming as independent non-executive directors.

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