China State Construction unit secures $300m factoring deal for liquidity

On December 19, 2025, China State Construction International Holdings Limited's indirect wholly-owned subsidiary, CSC International Investments, entered into a factoring arrangement. This involves acquiring an account receivable of 300 million yuan from Wenzhou Haisheng and then disposing of it to China Construction Commercial Factoring Company Limited (CCCF) for a principal sum of 300 million yuan at a 91% discount rate. The arrangement, with a term not exceeding 24 months, provides immediate funding for working capital and business development.

The consideration paid by CSC International Investments to Wenzhou Haisheng for the account receivable is 273 million yuan, which is also the amount CCCF will pay to CSC International Investments. This sum was determined through arm's-length negotiations, considering the book value, repayment period, factoring terms, and the debtor's creditworthiness. The transaction, aggregated with prior connected transactions from May 30, 2025, and August 20, 2025, remains below the 5% percentage ratios threshold, exempting it from independent shareholders' approval under Chapter 14A of the listing rules.

CCCF, an indirect wholly-owned subsidiary of CSCECL (the company’s intermediate holding company), is considered a connected person of the company. The board believes the factoring arrangement, while not in the ordinary course of business, is on normal commercial terms and is fair and reasonable, serving the best interests of the company and its shareholders.