CNBM discloses past intra-group loans with Saima IOT, strengthens internal controls

China National Building Material Company Limited (CNBM) has issued a supplemental announcement detailing the basis for determining the annual cap of the Fund Lending Framework Agreement with Saima IOT. Saima IOT, a connected subsidiary, requires significant funding for its "Find a Car" intelligent logistics platform, needing investment in algorithm iteration, server expansion, and data security systems to enhance cargo matching efficiency. The company also needs working capital for logistics and post-vehicle services.

Historically, Ningxia Building Materials, a CNBM subsidiary, entered into loan agreements with Saima IOT. Loans totaling RMB600 million for the year ended 31 December 2022 and RMB1,000 million for the year ended 31 December 2023 were fully repaid by 30 January 2024. These loans were provided as working capital for the "Find a Car" platform, with interest rates calculated based on the one-year loan prime rate with downward adjustments (3.2% for both loans).

CNBM has reviewed its internal controls and implemented measures, including tightening internal procedures for reviewing and assessing compliance with Listing Rules. The company also strengthened management of investment and financing transactions by subsidiaries, and established a new funding reporting and control system in early 2024. Risk assessments for Saima IOT and compliance evaluations for Ningxia Building Materials were also conducted.