VESYNC (02148) announced that its wholly-owned subsidiary Etekcity Corporation (Etekcity) and HSBC Shanghai entered into a qualified receivables discounting agreement on June 19, 2024. According to the agreement, the bank agrees to provide Etekcity with non-recourse receivables discounting services of up to $60 million in qualified receivables discounting balance from the date of the agreement, and Etekcity agrees to transfer any outstanding balances not exceeding $60 million in qualified receivables to the bank. Etekcity also agrees to submit qualified receivables notice and related invoices for unpaid balances not exceeding $60 million to the bank for approval, and the bank will provide Etekcity with 70% of the applied amount of the receivables notice.
In accordance with the receivables discount agreement, Etekcity submitted its first and second receivables notices and corresponding sales invoice details to the bank on June 20, 2024, with amounts of $2.934 million and $25.0081 million, respectively. Both receivables notices have been approved by the bank. On July 22, 2024, Etekcity sent its third receivables notice and corresponding sales invoice details to the bank, with an amount of $32.0551 million, which was also approved by the bank.
The announcement stated that the receivables discounting agreement and receivables notice were entered into by the company in the course of its general and daily business, and are beneficial to fully leveraging the advantages of all parties. The agreement is beneficial to the company for revitalizing its accounts receivable assets, accelerating asset turnover, and expanding financing channels.
