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.
Power Financial GroupLimited
權 威 金 融 集 團 有 限 公 司
(Incorporated in Bermuda with limited liability)
(Stock code: 397)
DISCLOSEABLE TRANSACTION -
GRANT OF LOAN
Reference is made to the 2020 June Announcement regarding the advance of the Previous Loan in the principal amount of HK$17,000,000 to the Borrower, an Independent Third Party. Prior to the publication of this announcement, all interest accrued on the Previous Loan has been fully paid by the Borrower.
The Board announces that on 31 March 2021, the Lender, an indirect wholly-owned subsidiary of the Company, and the Borrower entered into the New Loan Agreement to advance the New Loan in the principal amount of HK$18,000,000 bearing interest at rates from 13% per annum to 14% per annum and for a term of one year from 31 March 2021 maturing on 31 March 2022. Part of the principal amount of the New Loan was advanced to re-finance the principal amount of the Previous Loan. The New Loan is secured by (i) the Mortgage and (ii) the Guarantees.
As the highest applicable percentage ratio as defined under the Listing Rules in respect of the advance of the New Loan exceeds 5% and is lower than 25%, the advance of the New Loan constitutes a discloseable transaction of the Company under Chapter 14 of the Listing Rules and is subject to notification and announcement requirements under Chapter 14 of the Listing Rules.
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BACKGROUND
Reference is made to the 2020 June Announcement regarding the advance of the Previous Loan in the principal amount of HK$17,000,000 maturing on 31 May 2021 to the Borrower.
The Board announces that on 31 March 2021, the Lender and the Borrower entered into the New Loan Agreement to advance the New Loan in the principal amount of HK$18,000,000 bearing interest at rates from 13% per annum to 14% per annum and for a term of one year from 31 March 2021 maturing on 31 March 2022.
Details of the New Loan are set out in this announcement below.
THE ADVANCE OF THE NEW LOAN
The principal terms of the advance of the New Loan are summarised as follows:
Date of transaction | : | 31 March 2021 |
Lender | : E Finance Limited, a company incorporated in Hong Kong | |
with limited liability, which (i) principally engages in | ||
money lending business in Hong Kong and is a licensed | ||
money lender in Hong Kong under the Money Lenders | ||
Ordinance; and (ii) is an indirect wholly-owned subsidiary | ||
of the Company | ||
Borrower | : Strong Delights Limited, a company incorporated in Hong | |
Kong with limited liability, which (i) to the best of the | ||
Directors' knowledge, information and belief, having made | ||
all reasonable enquiries, principally engages in property | ||
holding; and (ii) is ultimately owned by Guarantor 1 | ||
To the best of the Directors' knowledge, information and | ||
belief, having made all reasonable enquiries, each of the | ||
Borrower and its ultimate beneficial owner, being Guarantor | ||
1, is an Independent Third Party | ||
Principal amount | : HK$18,000,000, of which HK$17,000,000 was advanced to | |
re-finance the principal amount of the Previous Loan | ||
Maturity date | : | 31 March 2022 |
Interest rate per annum | : 14% for the first month and 13% from the second to the | |
twelfth month |
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Collateral security | : (i) the Mortgage and (ii) the Guarantees |
To the best of the Directors' knowledge, information and belief, having made all reasonable enquiries, each of the mortgagor and guarantors, being the Borrower, Guarantor 1 and Guarantor 2, is an Independent Third Party
The advance of the New Loan (both the portion of HK$17,000,000 for re-financing the principal amount of the Previous Loan and the remaining portion of HK$1,000,000) was funded by internal resources of the Group.
All interest accrued on the Previous Loan prior to the publication of this announcement has been fully paid by the Borrower.
INFORMATION ABOUT THE GROUP
The Group principally engages in financial services business, money lending business, trading business and assets investment.
REASONS FOR AND BENEFITS OF THE ADVANCE OF THE NEW LOAN
Money lending business is currently one of the Group's principal business activities. The terms of the advance of the New Loan were arrived at by the parties after arm's length negotiations with reference to the prevailing market conditions and practices and taking into account the repayment record of the Borrower. Having considered that the advance of the New Loan would be beneficial to the Group in terms of return (i.e. additional interest income), the Directors consider that the terms of the advance of the New Loan are on normal commercial terms and are fair and reasonable and in the interests of the Company and the Shareholders as a whole.
IMPLICATIONS UNDER THE LISTING RULES
As the highest applicable percentage ratio as defined under the Listing Rules in respect of the advance of the New Loan exceeds 5% and is lower than 25%, the advance of the New Loan constitutes a discloseable transaction of the Company under Chapter 14 of the Listing Rules and is subject to notification and announcement requirements under Chapter 14 of the Listing Rules.
DEFINITIONS
Unless otherwise specified, the following terms have the following meanings in this announcement:
"2020 June Announcement" | the announcement of the Company dated 1 June 2020 |
regarding the advance of the Previous Loan to the Borrower |
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"Board" | the board of Directors |
"Borrower" | Strong Delights Limited, a company incorporated in Hong |
Kong with limited liability, which (i) principally engages in | |
property holding; and (ii) is ultimately owned by Guarantor | |
1. To the best of the Directors' knowledge, information and | |
belief, having made all reasonable enquiries, each of the | |
Borrower and its ultimate beneficial owner, being Guarantor | |
1, is an Independent Third Party. | |
"Company" | Power Financial Group Limited, a company incorporated in |
Bermuda with limited liability and the shares of which are | |
listed on the Main Board of the Stock Exchange | |
"Director(s)" | the director(s) of the Company |
"Group" | the Company and its subsidiaries |
"Guarantees" | the guarantees given by each of Guarantor 1 and Guarantor |
2 in favour of the Lender in respect of all monies and | |
obligations owing by the Borrower to the Lender from time | |
to time under the New Loan Agreement | |
"Guarantor 1" | Hiranand Ravine Lal, an individual who is (i) the sole |
director and the sole shareholder of the Borrower; and (ii) | |
an Independent Third Party | |
"Guarantor 2" | Hiranand Kamla Lal, an individual who is an Independent |
Third Party | |
"HK$" | Hong Kong dollars, the lawful currency of Hong Kong |
"Hong Kong" | the Hong Kong Special Administrative Region of the |
People's Republic of China | |
"Independent Third Party" | third party independent of the Company and its connected |
persons (as defined in the Listing Rules) of the Company | |
and their respective associates (as defined in the Listing | |
Rules) | |
"Lender" | E Finance Limited, a company incorporated in Hong Kong |
with limited liability, which (i) principally engages in | |
money lending business in Hong Kong and is a licensed | |
money lender in Hong Kong under the Money Lenders | |
Ordinance; and (ii) is an indirect wholly-owned subsidiary | |
of the Company | |
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"Listing Rules" | the Rules Governing the Listing of Securities on the Stock |
Exchange | |
"Money Lenders Ordinance" | Money Lenders Ordinance, Chapter 163 of the Laws of |
Hong Kong | |
"Mortgage" | the first mortgage over a commercial unit in Hong Kong |
given by the Borrower and in favour of the Lender | |
in respect of all monies and obligations owing by the | |
Borrower to the Lender from time to time under the New | |
Loan Agreement | |
"New Loan" | a loan in the principal amount of HK$18,000,000 for a term |
of one year advanced to the Borrower under the New Loan | |
Agreement | |
"New Loan Agreement" | the loan agreement dated 31 March 2021 entered into |
between (a) the Lender, as lender; and (b) the Borrower, as | |
borrower, in connection with the advance of the New Loan | |
"Previous Loan" | a loan in the principal amount of HK$17,000,000 for a |
term of one year advanced to the Borrower under the loan | |
agreement dated 1 June 2020 entered into between (a) the | |
Lender, as lender; and (b) the Borrower, as borrower, | |
"Shareholder(s)" | holder(s) of the share(s) in the share capital of the Company |
"Stock Exchange" | The Stock Exchange of Hong Kong Limited |
"%" | per cent |
On behalf of the Board | |
Power Financial Group Limited | |
Choi Chun Chung, Danny | |
Chairman and Chief Executive Officer | |
Hong Kong, 31 March 2021 |
As at the date of this announcement, the executive Directors are Mr. Choi Chun Chung, Danny and Mr. Siu Kam Chau; and the independent non-executive Directors are Mr. Chiu Ka Wai, Ellis and Mr. Kwok Sze Kong.
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Jun Yang Financial Holdings Ltd. published this content on 31 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 March 2021 11:11:04 UTC.