Hainan Development secures M&A loan, pledges subsidiary equity for acquisition

Hainan Development has completed the acquisition of a 51% stake in Hangzhou Wangying Technology for 438,424,600 yuan, payable in installments. To finance this acquisition, the company secured an M&A loan of 263,050,000 yuan from Industrial Bank, collateralized by its 26,316,000 shares of Hangzhou Wangying Technology.

Additionally, Hainan Development provided a joint liability guarantee for a 30,000,000 yuan credit line to its controlled subsidiary, Shenzhen Sanxin Technology Development, from the Bank of China. This guarantee falls within the previously approved 2025 annual financing guarantee limit of 1,971,000,000 yuan for subsidiaries.

As of the disclosure date, the cumulative contractually guaranteed amount by the company and its subsidiaries totals 1,816,500,000 yuan, representing 170% of the company's latest audited net assets. Guarantees provided for subsidiaries amount to 1,210,200,000 yuan, or 113% of the latest audited net assets. Shenzhen Sanxin Technology's smaller shareholders have also provided counter-guarantees through equity pledges, mitigating overall risk.