Pak Tak International Limited announced that its indirect non-wholly-owned subsidiary, Fushun Xingzhou Mining, signed a cross-guarantee agreement on 24 April 2026 with two entities ultimately owned by Pak Tak’s chairman and CEO, Mr. Wu Zongchuan—namely, Fushun Huawei Mining Technology Development and Fushun Zongchuan Mining Development.
Under the arrangement, effective from 24 April 2026 to 31 December 2028, each party will provide joint-and-several guarantees for bank facilities to be granted by Bank of Fushun. Separate guarantee agreements will be executed for each specific facility.
Key financial parameters • Proposed annual caps for guarantees to be extended by Fushun Xingzhou: – To Fushun Huawei: RMB15.00 million per year. – To Fushun Zongchuan: RMB120.00 million per year. • As at the announcement date, existing guarantees already stand at RMB14.72 million for Fushun Huawei and RMB120.00 million for Fushun Zongchuan. • Fushun Zongchuan currently provides corporate guarantees totaling RMB368.50 million in favour of Fushun Xingzhou.
Listing Rules implications Because Fushun Huawei and Fushun Zongchuan are associates of Mr. Wu Zongchuan, the transaction constitutes a continuing connected transaction. The highest applicable percentage ratio for Fushun Xingzhou’s guarantees exceeds 5 % but is below 25 %, triggering reporting, announcement, circular and independent shareholder approval requirements under Chapter 14A, and discloseable transaction requirements under Chapter 14 of the Hong Kong Listing Rules. Guarantees provided in the reverse direction—from Fushun Huawei or Fushun Zongchuan to Fushun Xingzhou—are fully exempt under Rule 14A.90.
Approval process A special general meeting (SGM) will be convened for independent shareholders to vote on Fushun Xingzhou’s proposed guarantees. Mr. Wu Qi, a substantial shareholder and director of the three involved companies, will abstain from voting. An Independent Board Committee and an Independent Financial Adviser (Lego Corporate Finance Limited) have been appointed, and a circular detailing the arrangement will be dispatched on or before 11 May 2026.
Rationale and controls Pak Tak stated that reciprocal guarantee structures are common in the mining sector, facilitating access to bank financing and spreading operational risk. The Group’s long-standing cooperation with the two counterparties underpins the arrangement. Internal controls include oversight by Fushun Xingzhou’s management, compliance reviews, audit-committee monitoring, annual reviews by independent non-executive directors, and external auditor verification.
The Board (with the abstention of Mr. Wu Zongchuan and pending independent non-executive director views) considers the terms fair, reasonable and in the interests of shareholders as a whole.