Jinmao renews cash pooling with Sinochem for financial security

China Jinmao Holdings Group Limited has entered into a renewed cash pooling cooperation arrangement, effective from January 1, 2026, to December 31, 2028. This arrangement continues the company's participation in a cash pool established with Sinochem Hong Kong Group and a bank. Sinochem Hong Kong Group and Sinochem Hong Kong Capital provide additional protection for the company's deposits. As Sinochem Hong Kong Group is the controlling shareholder and Sinochem Hong Kong Capital is a wholly-owned subsidiary, this is a continuing connected transaction.

Under the new terms, the company's deposits will earn interest at overnight SOFR plus 10 basis points for $ deposits or overnight HIBOR plus 10 basis points for HK$ deposits. The maximum daily outstanding balance of deposits (including accrued interest) will not exceed the outstanding balance of a loan provided by Sinochem Hong Kong Capital, which is equivalent to $105,000,000. This loan serves to protect the company's deposits, allowing for set-off in case of any shortfall.

The company may also overdraw its accounts up to $120,000,000, with overdraft interest calculated at overnight SOFR plus 50 basis points for $ or overnight HIBOR plus 50 basis points for HK$. The company expects the maximum daily balance of its deposits in the cash pool to be $105,000,000 during the term of the renewed arrangement, based on its cash balance, the loan amount, overdraft limit, and financial management strategies.