Hong Kong Finance : DISCLOSEABLE TRANSACTION PROVISION OF FINANCIAL ASSISTANCE (in PDF)

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Hong Kong Finance Group Limited 香 港 信 貸 集 團 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1273)

DISCLOSEABLE TRANSACTION PROVISION OF FINANCIAL ASSISTANCE

PROVISION OF FINANCIAL ASSISTANCE

The Board is pleased to announce that on 10 January 2018, the Loan Agreement was entered into between HK Finance, an indirect wholly-owned subsidiary of the Company as lender, and Customer K as the Borrower. Pursuant to the Loan Agreement, HK Finance granted a secured loan in the principal amount of HK$37.0 million to the Borrower for a term of twelve months.

LISTING RULES IMPLICATIONS

As certain applicable percentage ratios under the Rule 14.07 of the Listing Rules in respect of the amount of financial assistance granted to the Borrower are more than 5% but less than 25%, the Loan granted under the Loan Agreement 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.

PROVISION OF FINANCIAL ASSISTANCE

The Board is pleased to announce that on 10 January 2018, the Loan Agreement was entered into between HK Finance, an indirect wholly-owned subsidiary of the Company as lender, and Customer K as the Borrower. Pursuant to the Loan Agreement, HK Finance granted a secured loan in the principal amount of HK$37.0 million to the Borrower for a term of twelve months.

The principal terms of the Loan Agreement are set out below:

THE LOAN AGREEMENT

Date of the Loan

• : 10 January 2018

  Agreement

  Lender : HK Finance

  Borrower : Customer K

  Principal : HK$37.0 million

  Interest rate

• : At a rate of 0.83334% per month (i.e. 10% per annum)

  Repayment

• : Subject as otherwise provided in the Loan Agreement, the Borrower shall pay the monthly interest for 12 months with the principal at loan maturity

  Prepayment

• : The Borrower shall have an option to make early repayment of the whole or part of the said Loan after the date of loan drawdown subject to the Borrower giving HK Finance not less than one calendar month's advance notice in writing

  Security

• : An all-money first legal charge in favour of HK Finance in respect of residential properties located in Hong Kong, with valuation conducted by an independent professional property valuer with an aggregate amount of approximately HK$51.0 million

FUNDING OF THE LOAN

HK Finance will finance the Loan with the Group's internal generated funds.

INFORMATION ON THE BORROWER

The Borrower is a corporation and was approached by the Group through its network. To the best of the knowledge, information and belief of the Directors having made all reasonable enquiry, the Borrower and its ultimate beneficial owners are third parties independent of the Company and its connected persons (as defined under the Listing Rules).

REASONS FOR AND BENEFITS OF ENTERING INTO THE LOAN AGREEMENT

The Company is an investment holding company. The Company and its subsidiaries are principally engaged in money lending business in Hong Kong.

The granting of the Loan to the Borrower pursuant to the Loan Agreement is in the ordinary course of business of the Group and on normal commercial terms. The Directors consider that the granting of the Loan is a financial assistance provided by the Company within the meaning of the Listing Rules.

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

LISTING RULES IMPLICATIONS

As certain applicable percentage ratios under the Rule 14.07 of the Listing Rules in respect of the amount of financial assistance granted to the Borrower are more than 5% but less than 25%, the Loan granted under the Loan Agreement 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
''Borrower'' or	a corporation pursuant to the Loan Agreement and is a third
''Customer K''	party independent of the Group and its connected persons
(as defined under the Listing Rules)
''Company''	Hong Kong Finance Group Limited (香港信貸集團有限公
司), a company incorporated in the Cayman Islands with
limited liability, 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
''HK$''	Hong Kong Dollars, the lawful currency of Hong Kong

''HK Finance''

Hong Kong Finance Company 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), which is an indirect wholly-owned subsidiary of the Company.

''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

''Loan''

the secured loan with principal amount of HK$37.0 million granted by HK Finance to Customer K pursuant to the Loan Agreement

''Loan Agreement''

the loan agreement dated 10 January 2018 entered into between HK Finance and Customer K in respect of the Loan

''Stock Exchange''

Hong Kong, 10 January 2018

The Stock Exchange of Hong Kong Limited

On behalf of the Board

Hong Kong Finance Group Limited

Chan Kwong Yin William

Chairman

As at the date of this announcement, the Board comprises the following members:

Executive Directors:

Mr. Chan Kwong Yin William (Chairman) Mr. Chan Koung Nam

Mr. Tse Pui To (Chief Executive Officer)

Independent non-executive Directors: Mr. Chan Siu Wing Raymond

Mr. Chu Yat Pang Terry

Mr. Cheung Kok Cheong