Zhonggan Communication (Group) Holdings Limited Announces Provision of RMB250 Million Guarantee for Subsidiary Banking Facilities

Key Highlights

• Provision of Guarantee: Zhonggan Communication (Group) Holdings Limited (“the Company”) has provided a guarantee of up to RMB250,000,000 (approximately HKD 273 million) to Ganzhou Bank Company Limited, Qingshanhu Branch.
• Purpose of Guarantee: The guarantee supports the banking facilities granted to its wholly-owned subsidiary, Zhonggan Communication (Group) Co., Ltd., ensuring the due performance of obligations under a new facility agreement.
• Strategic Rationale: The move is aimed at strengthening the subsidiary’s cash flow management and providing additional financing resources for business operations, especially in light of ongoing global and local economic uncertainties.
• Announcement Requirement: The Company is issuing this announcement as required by the Bank, ensuring full transparency for shareholders and the market.
• Independent Transaction: The Bank and its ultimate beneficial owner are confirmed to be independent third parties, with no connections to the Company or its connected persons.

Details for Investors

The Board of Directors of Zhonggan Communication (Group) Holdings Limited has voluntarily announced the provision of a significant guarantee to Ganzhou Bank Company Limited, Qingshanhu Branch. This guarantee covers banking facilities of up to RMB250 million made available to the Company’s wholly-owned subsidiary, Zhonggan Communication (Group) Co., Ltd.

The guarantee is structured to ensure the subsidiary fulfills all obligations under the newly signed facility agreement. The terms of the facility agreement and guarantee have been negotiated on an arm’s length basis and are considered by the Board to be fair, reasonable, and in the best interests of both the Company and its shareholders.

Potential Impact on Shareholders and Share Price

• Enhanced Financial Flexibility: The facility will provide the subsidiary with greater liquidity, supporting its business operations and cash flow management. This could position the Group to better navigate economic challenges and capitalize on future opportunities.
• Risk Disclosure: While the guarantee improves access to financing, it also increases the parent company’s contingent liabilities. Shareholders should consider the potential impact on the Company’s risk profile and future financial performance.
• Transparency and Governance: The announcement underscores the Company’s commitment to transparency and good governance, which could positively influence investor sentiment.
• Price Sensitivity: The provision of a large-scale corporate guarantee can be price-sensitive news, as it both supports growth and introduces additional parent-level obligations. Investors should closely monitor subsequent developments and the subsidiary’s use of the new financing.

Board Statement and Corporate Information

The Board, including Chairman and Executive Director Mr. Liu Haoqiong, has stated that the guarantee and facility agreement are in the interests of the Company and its shareholders as a whole. The executive director team is comprised of Mr. Liu Haoqiong, Mr. Peng Shengqian, Ms. Xie Xiaolan, Mr. Liu Dingli, Mr. Liu Dingyi, and Mr. Zhou Zhiqiang. The independent non-executive directors are Mr. Yu Shiyong, Mr. Zhu Yugang, and Mr. Zhao Hezhen.

This announcement was made in Hong Kong on 3 March 2026.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own research or consult financial advisors before making any investment decisions. The information provided is based on the Company’s official announcement and may be subject to change.

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