Shandong International Trust Co., Ltd. (SDITC) has issued a supplemental circular ahead of its 2025 Annual General Meeting, asking independent shareholders to approve a new Loan Framework Agreement with controlling shareholder Lucion Group that could provide the trust company with financing of up to RMB1.20 billion through end-2028.
Key terms • Ceiling: Aggregate outstanding principal plus accrued interest capped at RMB1.20 billion for each of the three years ending 31 December 2028. • Tenor: Each drawdown will run for a period agreed in individual contracts but no later than 31 December 2028. • Pricing: Interest = Lucion Group’s average funding cost + 70% × (one-year CTPF liquidity-support rate – Lucion’s funding cost). The structure ensures rates remain below those offered by China Trust Protection Fund (CTPF), SDITC’s current primary lender. • Collateral: SDITC will pledge A-shares of China Zheshang Bank it holds, with a maximum pledge rate of 80%. • Use of proceeds: 1) Repay roughly RMB700 million of existing CTPF borrowings; 2) Supplement working capital, including annual operating and administrative expenses of about RMB290 million; 3) Fund a three-year technology upgrade plan budgeted at RMB150 million (family-trust platform, risk-control systems, AI applications and IT talent).
Economic impact Replacing the current RMB700 million CTPF loan with Lucion funding is expected to save SDITC about RMB18 million in annual financing costs. Should the company utilise the full RMB1.20 billion cap, annual interest savings versus CTPF rates are estimated at roughly RMB7 million.
Governance and approvals • Lucion Group and its associate Shandong High-Tech collectively own 52.96% of SDITC and will abstain from voting. • An Independent Board Committee and Lego Corporate Finance (independent adviser) have concluded the terms are on normal commercial footing, fair and reasonable, and in line with shareholder interests. • The ordinary resolution will be put to a poll at the AGM scheduled for 30 June 2026 in Jinan.
Background The National Financial Regulatory Administration’s revised Administrative Measures for Trust Companies, effective January 2026, restrict trust firms’ funding sources. SDITC currently relies on CTPF loans and short-term interbank borrowing; the new arrangement with Lucion broadens financing channels while complying with the updated rules.
If approved, the facility will provide SDITC with longer-term, lower-cost liquidity support through to 2028, strengthening its capital position and funding planned digital transformation initiatives.