Summary by Moomoo AI
Zhongda Group Holdings Limited announced on 15 January 2024 that its wholly-owned subsidiary Yifeng Finance Limited signed a financing letter with independent third party client A, pursuant to which the letter will provide a revolving loan of HK$6 million to Client A with a loan term of three years at an annual interest rate of HK$6 million 7%。 The loan will be secured by a property located in China under Client A, which has an independent valuation of approximately HK$5620 million. CDA Group stated that this loan transaction was based on the valuation of Client A's credit history and collateral, considering the credit risk involved to be lower. This transaction is a disclosable transaction in accordance with Chapter 14 of the Listing Rules because the relevant percentage exceeds 5%. CITIC GROUP'S MAIN BUSINESS INCLUDES SECURITIES AND FUTURES TRADING, FINANCIAL INVESTMENT AND LENDING BUSINESS, WHILE YIFENG PROVIDES UNSECURED AND COLLATERALIZED LENDING SERVICES TO LICENSED LENDERS. The Board considers that this loan will provide the Group with a stable source of interest income.