Lee & Man Paper extends JV loan, revises terms to 2028

Lee & Man Paper Manufacturing Limited has extended the maturity date of a loan to its PRC joint venture (PRC JV) to December 31, 2028, from the previous December 12, 2025. This marks the fourth supplemental agreement for the loan, which was originally due December 31, 2018. The principal amount of the loan has been adjusted from RMB60m to RMB55m, and the interest rate has been lowered from 3.5% to 3.0% per annum.

The PRC JV is indirectly owned 50% by Lee & Man Paper and 50% by Lee & Man Chemical Company Limited (LMC), making it a connected person under Listing Rules. The transaction is a connected transaction subject to reporting and announcement requirements, but is exempt from circular and shareholder approval.

The extension supports the PRC JV's operations, which provide exclusive logistical support and services to the Group's Jiangxi operations. Directors, including independent non-executive directors, consider the terms fair and reasonable, negotiated at arm's length, and in the company's and shareholders' best interests. Two executive directors, Dr. Lee Man Chun Raymond and Mr. Lee Man Bun, abstained from voting due to their association with Mr. Lee Man Yan, the ultimate controlling shareholder of LMC.