Pak Tak International Limited has issued a circular detailing three guarantees already provided and a new cross-guarantee framework that will be put to shareholder vote at a special general meeting on 26 June 2026 in Hong Kong.
Key points
• Three historical guarantees – Guarantee I: RMB14.72 million, covering Fushun Huawei’s loan (term: 2 June 2026-1 June 2029). – Guarantee II: RMB40.00 million, covering Fushun Zongchuan’s Facility II (term: 9 Dec 2026-8 Dec 2029). – Guarantee III: RMB80.00 million, covering Fushun Zongchuan’s Facility III (term: 30 Nov 2026-29 Nov 2029). All three are joint-and-several guarantees granted by Pak Tak’s 96.62%-owned mining subsidiary, Fushun Xingzhou, in favour of The Bank of Fushun.
• Proposed cross-guarantee (2026-2028) Fushun Xingzhou, Fushun Huawei and Fushun Zongchuan plan to set up a mutual guarantee system for future bank facilities. Shareholders will vote on annual caps for guarantees to be provided by Fushun Xingzhou: – Up to RMB15.00 million a year for Fushun Huawei. – Up to RMB120.00 million a year for Fushun Zongchuan.
• Rationale The board states that reciprocal guarantees are common in the mining sector and help the group and its associates secure bank funding for ore purchases, project construction and loan repayments. Fushun Zongchuan currently guarantees RMB356.30 million of facilities for Fushun Xingzhou.
• Listing Rules implications Because Fushun Huawei and Fushun Zongchuan are associates of executive director and chairman Mr Wu Zongchuan and substantial shareholder Mr Wu Qi, the guarantees constitute connected transactions. Aggregate percentage ratios exceed 5 % but are below 25 %, making the matters discloseable and subject to independent shareholder approval.
• Internal-control actions The company has engaged BT Corporate Governance Limited to review internal controls and will implement enhanced procedures, including quarterly updates of connected-person lists and mandatory reporting of potential transactions exceeding HK$3.00 million.
• Special General Meeting Independent shareholders will vote on ratifying the three guarantees and approving the cross-guarantee caps on 26 June 2026. Proxy forms must be lodged by 24 June 2026.