Huaxing Capital Holdings (01911) announced that on March 11, 2024, the company signed a settlement agreement with Huaxing New Economy RMB Phase IV Fund.
According to the agreement, the company agreed to transfer all the rights of the special purpose companies (Tianjin Huaxing Fengyu Venture Capital Partnership (limited partnership) and Tianjin Huaxing Fengye Venture Capital Partnership (limited partnership)) for approximately RMB 790.77 million, while the special purpose company held the relevant portfolio rights of the Huaxing New Economy RMB Phase IV Fund. The Huaxing New Economy RMB Phase IV Fund is required to fully settle the equivalent amount of outstanding investment. After the outstanding investment amount is settled, the Huaxing New Economy RMB Phase IV Fund will not be required to pay accrued and unpaid interest to the Group (approximately RMB 116.8 million as of June 30, 2023). The outstanding investment amount is equivalent to the investment amount that the Group has invested in the invested company according to the Huaxing New Economy RMB Phase IV fund's advance investment arrangement and has not yet been repaid to the group.