Bayzed Health Group Inc. (Hong Kong-listed, code 02609) has announced a series of financial-assistance transactions comprising interest-free loans and corporate guarantees granted to Huangshan Shoukang Hospital, a Class III not-for-profit hospital managed by Bayzed Health’s 69.92%-owned subsidiary Anhui Shoukang Investment.
The aggregate outstanding balance of loans and guarantees currently stands at approximately RMB188.00 million, remaining within the RMB200.00 million ceiling stipulated in the company’s 13 June 2025 IPO prospectus for hospitals of this class.
Key terms of the loan • Maximum facility: RMB200.00 million • Interest: Non-interest bearing • Tenor: Repayable on demand • Security: Unsecured • Use of proceeds: Hospital operations, including procurement of pharmaceuticals, medical equipment and staff costs Funding derives from Bayzed Health’s internal resources.
Corporate guarantee portfolio Between October 2022 and March 2026, Bayzed Health (via subsidiaries Bayzed Medical Investment and Anhui Shoukang Investment) entered into eight guarantee agreements (A–H) with seven mainland Chinese banks. The guarantees back Huangshan Shoukang Hospital’s repayment obligations up to RMB275.80 million in aggregate principal, with individual caps ranging from RMB9.00 million to RMB130.00 million and availability periods of up to seven years. The guarantees cover principal, interest (including penalty and compound interest), default payments, liquidated damages and related enforcement costs.
Regulatory classification • Under Hong Kong Listing Rule 14.22, the loan and guarantees are aggregated as a single series of transactions. • The highest applicable percentage ratio exceeds 5% but is below 25%, classifying the package as a discloseable transaction requiring announcement but not shareholder approval. • As the aggregated assets ratio exceeds 8%, Bayzed Health has also made disclosures in accordance with Rules 13.13 and 13.15.
Rationale and risk management Huangshan Shoukang Hospital remits 10.0% of its revenue to Bayzed Health as management fees. Maintaining the hospital’s liquidity supports the group’s recurring income. Management assesses the probability of default at Huangshan Shoukang Hospital as “remote” based on ongoing monitoring of its financial condition. Should any guarantee be called, Bayzed Health intends to satisfy obligations using internal funds.
Compliance measures The board acknowledged an inadvertent past breach of aggregation requirements under the Listing Rules and has initiated corrective actions, including: 1) issuing internal guidance on notifiable-transaction compliance; 2) scheduling Listing Rules training for directors and senior staff by 30 April 2026; 3) strengthening internal monitoring to ensure total assistance to Huangshan Shoukang Hospital never exceeds the RMB200.00 million limit.
No director was required to abstain from the board’s approval of the loan and guarantees, which were deemed on normal commercial terms and in the interests of shareholders.