Zheneng Jinjiang Environment Announces Full Refinancing of RMB540 Million Loan Facility

Date: 9 April 2026
Company: Zheneng Jinjiang Environment Holding Company Limited (浙能锦江环境控股有限公司)

Key Highlights for Investors

• The Group has successfully repaid in full its previous RMB540 million loan facility from Zhejiang Provincial Energy Group Finance Co., Ltd. (“Zheneng Finance”) and has fully refinanced the facility with new agreements.
• The new loan facilities total RMB540 million and were drawn down on 9 April 2026, bolstering the Group’s working capital and liquidity position.
• Interest rate on the new facility remains competitive at 2.11% per annum, matching the rate of the previous facility after its reduction in FY2025.
• The new facility is secured by a share charge over 28.61% equity interest in Lin’an Jiasheng Environment Co., Ltd.—an asset with a registered capital of RMB540 million.
• The total credit line available from Zheneng Finance is RMB900 million, with RMB540 million currently drawn.
• Repayment of the new facility is scheduled in two tranches: RMB200 million (plus accrued interest) due on or about 1 April 2027, and RMB340 million (plus accrued interest) due on or about 8 April 2027.
• The transaction is classified as an Interested Person Transaction under Singapore Exchange rules, due to the close relationship between the Company, its largest shareholder (Zheneng Group), and the lender (Zheneng Finance).
• Aggregate interest payable under the new facility is RMB11.39 million, representing approximately 0.35% of the Group’s audited consolidated net tangible assets as at 31 December 2024.

Details of the Refinancing Arrangement

Zheneng Jinjiang Environment’s Board announced that as of 9 April 2026, the Group had fully repaid the outstanding amount under its previous RMB540 million loan facility, which was initially extended by Zheneng Finance for working capital use. The previous facility’s interest rate was reduced from 2.30% to 2.11% in FY2025.

Concurrently, the Group entered into new facility agreements on 2 April 2026 and 9 April 2026, securing a new aggregate loan of RMB540 million from Zheneng Finance. The drawdown took place simultaneously with the repayment of the earlier loan, ensuring no gap in liquidity for the Group’s operations.

The new loan amount was drawn from a larger RMB900 million credit line available to the Group from Zheneng Finance in 2026, giving the Group further flexibility for future funding needs.

The loan is structured to be repaid in two installments:

• RMB200 million plus accrued interest, due on or about 1 April 2027
• RMB340 million plus accrued interest, due on or about 8 April 2027

Security for the Loan: The new facility is secured by a share charge over approximately 28.61% of the equity interest in Lin’an Jiasheng Environment Co., Ltd. No additional security has been provided.

Use of Proceeds: The entire facility will be used to support the Group’s working capital needs, ensuring business continuity and operational stability.

Shareholder Considerations & Potential Price Sensitivity

• This refinancing ensures uninterrupted access to significant working capital, which is critical for the Group’s ongoing operations and growth plans.
• The competitive interest rate of 2.11% per annum reflects favorable financing terms, potentially supporting profitability and cash flow.
• No significant dilution or equity issuance is involved—financing is entirely debt-based, secured by a specific asset.
• Related party transaction: The lender is a subsidiary of the controlling shareholder, Zheneng Group, highlighting potential governance and independence considerations for minority shareholders.
• Aggregate interest cost is modest relative to net tangible assets (0.35%), indicating manageable financial risk.
• Events of default under the facility include non-payment, cessation of business, or winding up, which are standard but should be monitored by shareholders.
• Board and management involvement: Key directors were nominated by the controlling shareholder, which may interest investors focused on corporate governance.

Directors’ and Substantial Shareholders’ Interests

Two Board members, Mr. Wei Dongliang and Mr. Jin Ruizhi, were nominated by Zhejiang Energy Hong Kong Holding Limited—wholly owned by Zheneng Group. Except for their disclosed interests and shareholdings, no other directors or substantial shareholders have any direct or indirect interest in the new facility.

Contact for Further Information

Wang Ruihong
Executive Deputy Chairman and Deputy General Manager
Tel: (86) 153 5618 3219
Email: [email protected]

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. Investors should conduct their own research or consult a financial advisor before making any investment decisions.

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