1. The 15th meeting of the 6th Board of Directors of the Company deliberated on and passed the Motion on the Granting of a Basic Internal Credit Line to the Hang Seng Bank (Including Hang Seng Bank (China) Limited), which granted the Hang Seng Bank (Including Hang Seng Bank (China) Limited) a basic credit line of RMB 4 billion for internal purposes with a term of 1 year.

 

2. The 15th meeting of the 6th Board of Directors of the Company deliberated on and passed the Motion on the Granting of a Basic Credit Line to COFCO and the COFCO Finance Corporation Limited which: granted COFCO with a basic credit line of RMB 1.8 billion for external purposes with a term of 1 year, and that is to be used for working capital loans in RMB and foreign currencies, sight/usance letter of credit and import bill advance. Joint guarantee for the credit line is provided by the COFCO Finance Corporation Limited, Wherein, capital loans cannot exceed RMB 1 billion in sum and 3 years in term, and letters of credit and import bill advance are margin-free within a period of 90 days; and also granted the COFCO Finance Corporation Limited with a basic credit line of RMB 1 billion (The total risk exposure for this and the COFCO credit line does not exceed RMB 1.8 billion) for internal purposes with a term of one year, and that is to be used for inter-bank loans, re-purchase of credit assets and bill business. Joint guarantee for the credit line is provided by COFCO. 

 

II. Matter of Vote Avoidance: These transactions are related party transactions. The related director, Mr. Patrick K W Chan, refrained from voting on the related transaction concerning the Hang Seng Bank. The related director Chua Phuay Hee refrained from voting on the related transaction concerning COFCO.

 

III. Impact of Related Transaction:These related party transactions are classified as being a normal part of the Company’s comprehensive credit business. They have no significant impacts on the normal operation and financial position of the Industrial Bank Co., Ltd.