Huaibei GreenGold Industry Investment Co., Ltd. (Huaibei GreenGold; 02450) reported that its 67%-owned subsidiary, Huaibei Tongming Mining Co., Ltd., executed a RMB50.00 million loan agreement on 26 January 2026 with Huaibei City Construction Investment Holding Group Co., Ltd. (the Borrower). The transaction, carrying an annual interest rate of 4.10% and a term of 12 months, is classified as a disclosable transaction under Hong Kong Listing Rule 14.07.
The facility, funded entirely from Tongming Mining’s internal resources, is secured by a joint-and-several guarantee from Huaibei Public Utility Assets Operation Co., Ltd. The default interest rate is set at 6.15% per annum. Interest is payable quarterly, while the principal is due in full on 25 January 2027. Tongming Mining retains the right to demand early repayment. The guarantee remains effective for three years after maturity.
As of 28 August 2026, the Borrower had repaid RMB20.00 million of principal plus accrued interest. Both the Borrower and the Guarantor are wholly owned, directly or indirectly, by the Huaibei State-owned Assets Supervision and Administration Commission (Huaibei SASAC) and are deemed independent third parties to the listed issuer.
Management cited the Borrower’s state-owned background, infrastructure focus, and established funding record as key considerations in its credit review. The Board considers the 4.10% yield an attractive, recurring income stream at an acceptable risk level.
The company also acknowledged past non-compliance: the January 2026 facility should have been aggregated with a RMB100.00 million loan granted in April 2026, bringing total advances to RMB150.00 million within 12 months. Because the combined size test exceeded 5% but remained below 25%, both loans required timely disclosure but not shareholder approval. Miscalculations by Tongming Mining and insufficient review by the parent led to delayed reporting.
To prevent recurrence, Huaibei GreenGold is enhancing internal controls: • Mandatory Listing Rules training for directors, senior management, and relevant subsidiaries. • Closer coordination with external advisers on regulatory matters. • A central transaction register, pre-transaction checklists, and dual reviews by finance and legal teams for all sizeable transactions. • Periodic spot checks and semi-annual effectiveness reviews by the Audit Committee.
The company states that future notifiable transactions will be disclosed promptly in accordance with Listing Rules requirements.