Glonghui, April 2, 丨 Swissaigang Construction (06816.HK) announced that according to certain bank financing agreements with Hang Seng Bank and Macau International Bank (lender), the Group must fulfill certain financial contracts, including but not limited to maintaining (a) the minimum consolidated net tangible assets and (b) the minimum annual income and (b) the ratio of profit before interest, tax, depreciation and amortization of certain subsidiaries. According to the company's annual results announced on March 28, 2024, and the financial statements for the year ended December 31, 2023, the Group failed to fulfill the relevant financial agreement under the loan financing agreement entered into with the lender. The violation constitutes a breach of contract under loan financing. In this case, the lender has the right to declare that the loan under loan financing is due and payable immediately along with the accrued interest. At the date of this announcement, the total outstanding principal amount of the loan financing was approximately HK$162,961,000.
The Group has yet to obtain exemptions from lenders for violations. As of the date of this announcement, the lender did not require immediate repayment of the loan under loan financing.
Despite the breaches, the Group experienced no difficulties in obtaining financing from banks for its working capital. The company believes that the Group has sufficient financial resources to repay its debts, and that the violation has not had a significant adverse impact on the Group's operations.