Neo-Neon renews loan agreement with controlling shareholder, increases annual cap

Neo-Neon Holdings Limited announced the renewal of its loan agreement with Tongfang, its controlling shareholder, and Tongfang Science Park. The new 2025 Loan Agreement, effective from March 13, 2026, to March 12, 2029, will provide revolving loans not exceeding 600,000,000 yuan annually, an increase from the previous 400,000,000 yuan. These loans are designated for Tongfang's daily operating expenses, R&D, and working capital.

As Tongfang is a controlling shareholder, this constitutes a continuing connected transaction and a major transaction for Neo-Neon Holdings under the Listing Rules. The transaction is subject to reporting, announcement, annual review, and independent shareholders' approval due to applicable percentage ratios exceeding 5% and 25% respectively. An independent board committee and an independent financial adviser have been appointed to advise shareholders.

The company views the provision of loans as an opportunity to generate additional interest income from its idle cash resources, enhancing shareholder returns. The interest rates will be negotiated, not falling below the People's Bank of China's loan prime rate, major commercial bank rates, or rates offered to other independent third parties for similar loans.