Shanghai Broadband extends loan, addresses fund occupancy issues

Shanghai Broadband Technology (*ST Huke) has announced a RMB60,000,000 loan extension from its controlling shareholder, Kunming Communications Investment Group Co., Ltd., for one year. The loans, originally totaling RMB21,000,000 and RMB39,000,000, were set to mature in September and December 2025. The interest rate will be based on the one-year LPR (Loan Prime Rate) announced by the National Interbank Funding Center. This transaction, approved by the board and pending shareholder approval, aims to improve the company's financial condition.

Concurrently, *ST Huke continues to address the non-operating fund occupancy by its former controlling shareholder, Nanjing Sweet Group Co., Ltd., and its affiliates. The outstanding balance remains RMB348,612,206.20. The company plans to resolve this historical issue by publicly transferring its creditor's rights and related liabilities, a process that requires approval from state-owned assets regulators, the board, and shareholders.

The company's stock will continue to be subject to "other risk warnings" due to the unresolved fund occupancy. Investors are advised to exercise caution given the uncertainties surrounding the approval and successful completion of the creditor's rights transfer.