Hi Sun Technology (China) Limited Announces Third Phase Issuance of RMB169 Million Asset-Backed Securities

Hi Sun Technology (China) Limited (Stock Code: 818) has announced the establishment of the third phase of its asset-backed securities (“ABS”) programme, known as the Suixin Cloud Chain-E Credit Supply Chain Financial Asset-backed Special Scheme. This voluntary announcement, dated 22 April 2026, is intended to keep shareholders informed of a significant financing development that could impact the company’s capital structure and growth trajectory.

Key Highlights of the Announcement

• ABS Scheme – Phase 3 was established on 22 April 2026, with a total issue size of RMB169,000,000.
• The ABS are backed by factoring loan receivables repaid via electronic debt instruments, providing an underlying asset with defined cash flow characteristics.
• The securities are divided into two tranches:
  • Priority Tranche: RMB143,000,000, with an AAAsf credit rating (from an independent agency), a 2.6% coupon rate, and an expected maturity date of 31 March 2027.
  • Subordinated Tranche: RMB26,000,000, unrated, with maturity also on 31 March 2027.
• The priority tranche will be listed and traded on the Shanghai Stock Exchange, making it accessible to qualified institutional investors in mainland China.
• The subordinated tranche will be issued to Ronghui Zhida Factoring (a wholly-owned subsidiary of Jiexing Digital, which is 80.04% owned by Hi Sun Technology) or its designated affiliates.
• Should any underlying asset become ineligible, Ronghui Zhida Factoring is required to redeem it, thereby protecting the integrity of the ABS pool.
• The assets securitised through this ABS will remain consolidated in the Group’s financial statements.

Strategic Rationale and Potential Impact

• The proceeds from the ABS issuance will be used as general working capital for the fintech services segment of the Group, supporting core business operations and expansion.
• The directors believe this move will widen fundraising channels, providing access to low-cost capital. This is expected to help improve the company’s financing structure, operational flexibility, and investment capacity.
• The company states that the transaction is not price-sensitive and should not have any material adverse financial impact on the Group or its shareholders.
• The terms of the ABS issuance are described as “fair and reasonable” and in the best interests of both the company and its shareholders.

Board and Corporate Structure

• Hi Sun Technology (China) Limited is an investment holding company incorporated in Bermuda, listed in Hong Kong, and is principally engaged in payment and digital services, fintech, platform operation solutions, and financial solutions.
• The Board comprises five executive directors and three independent non-executive directors, demonstrating a robust governance structure.

Important Notes for Shareholders

• The credit rating of the priority tranche is for information only and does not constitute a recommendation to buy, sell, or hold the company’s securities.
• Shareholders and potential investors are advised to exercise caution when dealing in the securities of the company and to seek independent professional advice if needed.

Potential Price Sensitivity and Shareholder Relevance

While the Board does not consider the ABS issuance price-sensitive or likely to have a material adverse impact, the transaction enhances the company’s ability to secure cost-effective capital, which could positively influence its growth prospects and financial stability. Such improvements in capital structure and funding flexibility are often viewed favorably by the market and could affect the company’s valuation over time.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should make their own decisions based on independent research and professional advice.