China Resources Mixc renews loan agreements to boost cash returns

China Resources Mixc Lifestyle Services Limited has renewed its 2023 Framework Loan Agreements with the 2025 Framework Loan Agreements, effective December 23, 2025. These agreements will be valid from January 1, 2026, until December 31, 2028, and involve lending between the company, its subsidiaries, and other entities within the CRH and CRI groups. The daily maximum aggregate loan amount outstanding under both the 2025 Framework Loan Agreements is capped at RMB1,200m for each of the years ending December 31, 2026, 2027, and 2028.

The company's decision to renew these agreements is driven by the goal of enhancing the yield on its surplus cash. Historically, the group invested in short-term, principal-protected products, but a downward trend in their yield has prompted a shift towards low-risk, fully-guaranteed inter-company loans as a substitute. The loans are extended at rates determined by the relevant HIBOR, SOFR, or RMB borrowing rates, plus a non-negative margin, or a higher rate based on CRH/CRI borrowing or lender deposit rates.

These transactions qualify as continuing connected transactions. While they exceed 0.1% but not 5% of applicable percentage ratios, they are subject to reporting, announcement, and annual review requirements but are exempt from independent shareholders' approval under Chapter 14A of the Listing Rules. The board views the terms and annual caps as fair and reasonable, negotiated on an arm's length basis, and in the interests of the company and its shareholders.