China Financial Services Holdings Limited Announces Discloseable Transaction: Provision of Financial Assistance

Key Highlights of the Announcement

• Date of Announcement: 16 March 2026
• Transaction Type: Discloseable Transaction under Chapter 14 of the Hong Kong Listing Rules
• Nature of Transaction: Provision of financial assistance through a secured loan
• Loan Amount: RMB8,500,000
• Loan Term: 6 months from the drawdown date
• Interest Rate: 15.6% per annum, with interest payable monthly and principal due at maturity
• Lender: CFSH Urban Development (Beijing) Small Loan Co., Ltd. (UDSL), a wholly-owned subsidiary of the Group
• Borrower: Ms. Yang Xue Bing (Customer FS), an individual in the technology services industry and an Independent Third Party
• Security: First legal charge mortgage over a residential property in Daxing District, Beijing, independently valued at approximately RMB12,350,000 as of 2 March 2026
• Funding Source: The Group’s general working capital

Detailed Transaction Information

China Financial Services Holdings Limited (the “Company”, Stock Code: 605) has entered into a Loan Agreement with Ms. Yang Xue Bing, an independent individual borrower engaged in the technology services industry in the PRC. The agreement, dated 16 March 2026, stipulates that UDSL, a wholly-owned subsidiary of the Company, will provide a six-month secured loan in the principal amount of RMB8,500,000 at an annual interest rate of 15.6%.

The security for the loan is a first legal charge mortgage over a prime residential property in Daxing District, Beijing, with an independent valuation of RMB12,350,000. This collateral is considered sufficient to cover the risk associated with the loan.

The Borrower, Ms. Yang Xue Bing, has no prior relationship with the Company or its subsidiaries and was introduced to the Group through its network. Extensive due diligence was conducted, and the Borrower was assessed as having a solid net worth and the ability to meet repayment obligations. The Company’s Board believes that the risks associated with this loan are manageable, further supported by the short-term nature of the facility and the high-quality collateral.

The Group will fund the loan from its general working capital, aligning with its principal business activities in the provision of financial services in Hong Kong and the PRC.

Potentially Price-Sensitive Information for Shareholders

• Discloseable Transaction: The size of the loan exceeds 5% but is less than 25% of the applicable percentage ratios under Rule 14.07 of the Listing Rules, triggering a mandatory disclosure to the market. Such transactions can influence market perception of the Company’s risk profile and capital allocation.
• Interest Income Impact: The high interest rate (15.6% per annum) and fully secured nature of the loan could generate a stable and significant interest income stream, positively affecting the Company’s short-term revenue and cash flow.
• Risk Management: The Board has emphasized that the loan is fully secured, the borrower’s financial standing is strong, and the transaction is in the Group’s ordinary course of business. However, any adverse change in the borrower’s ability to repay or significant drop in property values in Beijing could have a financial impact.
• Strategic Implications: This transaction showcases the Company’s ongoing strategy to leverage its capital base for high-yield, collateralized lending opportunities in the PRC, which may support higher growth and returns for shareholders.

Additional Details

• Directors: The board of directors comprises Mr. Zhang Min (Chief Executive Officer) as Executive Director, and five Independent Non-executive Directors: Mr. Chan Chun Keung, Mr. Cheung Pak To, Mr. Lee Ka Wai, Madam Zhan Lili, and Mr. Zhang Kun.
• Announcement Responsibility: The announcement is made under the authority of the Company Secretary, Mr. Chung Chin Keung.

Conclusion

This financial assistance transaction is notable for its size, structure, and the potential for stable, high-yield income, underpinned by quality collateral. Shareholders should monitor the potential impact on the Company’s earnings and risk profile, as well as market reactions to the disclosed transaction. The Board considers this transaction fair, reasonable, and in the interests of the Company and its shareholders as a whole.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should make their own assessments and consult professional advisers before making any investment decisions. The information is based on the official company announcement and may be subject to risks and uncertainties, including market and credit risks.

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