China New Town Development Company Limited (Stock Code: 1278) released an announcement regarding a major transaction concerning the extension of an existing loan arrangement (the “Extended Loan”) for its joint venture. According to the announcement, a loan facility of RMB500 million originally set to expire in January 2031 has been extended to January 2033. As of the date of the announcement, the outstanding principal under the Extended Loan amounts to approximately RMB423 million.

Under this arrangement, Xincheng Kaiyuan, a wholly owned subsidiary of China New Town Development Company Limited, and Jiangsu Provincial Construction Group Co., Ltd. (JPC) will each continue providing guarantees for the Extended Loan, sharing equal proportions of 50%. Xincheng Kaiyuan has also executed a liquidity support letter, limited to its existing guarantee ratio, to facilitate any potential shortfall in repayments by the joint venture.

The announcement states that the highest applicable percentage ratio of the transaction meets the criteria for a major transaction under Chapter 14 of the Listing Rules. The company has obtained written approval from significant shareholders Xitong International Holdings (HK) Limited and China Development Bank International Holdings Limited in lieu of convening a general meeting. Consequently, no extraordinary general meeting will be held to approve this arrangement.

A circular containing more details about the Extended Loan and related matters is expected to be dispatched to shareholders on or before December 3, 2025, in accordance with regulatory requirements.