Pak Tak International Limited (Pak Tak) has released additional information regarding a series of connected and discloseable transactions involving cross-guarantees among its mining-related subsidiaries and associates in the Fushun region.
Key guarantee arrangements • Guarantee I: Fushun Xingzhou renewed its guarantee for Fushun Huawei on 11 March 2026, covering an amended principal of RMB14.72 million under an extended facility maturing on 2 June 2026. • Guarantee II: Fushun Xingzhou agreed on 1 December 2025 to guarantee up to RMB40.00 million in bank borrowings obtained by Fushun Zongchuan, with the facility running from 10 December 2025 to 9 December 2026. • Guarantee III: Fushun Xingzhou concurrently guaranteed a separate RMB80.00 million facility arranged for Fushun Zongchuan, effective from 1 December 2025 to 30 November 2026.
Aggregate implication under the Hong Kong Listing Rules The combined principal of the three guarantees is RMB134.72 million. Because Fushun Huawei and Fushun Zongchuan are ultimately controlled by Pak Tak’s chairman and CEO Mr Wu Zongchuan, the transactions are classified as connected transactions. The highest applicable percentage ratio exceeds 5 % but is below 25 %, triggering announcement, circular and independent shareholders’ approval requirements under Chapter 14A of the Listing Rules.
Background on mutual guarantees in Fushun mining cluster • Fushun Zongchuan has guaranteed up to RMB368.50 million of Fushun Xingzhou’s facilities since 2019, following partial repayments of RMB6.50 million. • Fushun Xingzhou has provided guarantees of up to RMB120.00 million for Fushun Zongchuan since 2020, and up to RMB50.00 million for Fushun Huawei since 2019. Management states that reciprocal guarantees are customary in mining finance to mitigate sector-specific risks and to secure bank funding for ore purchase and construction.
Internal control enhancements Pak Tak engaged BT Corporate Governance Limited on 25 March 2026 to review and improve its internal control framework. The review will proceed in two phases, with an initial assessment and remedial recommendations due by end-April 2026 and a follow-up implementation review by end-June 2026. Additional actions include: 1. Circulation of updated Listing Rules guidance to directors and senior management. 2. A new reporting mechanism whereby potential connected transactions above HKD3 million (approximately RMB2.70 million) must be escalated to executive director Mr Liu Weixiong within three days of identification. 3. Mandatory training on Chapters 13, 14 and 14A of the Listing Rules to be completed by July 2026.
The board reaffirms that the guarantees are extended on normal commercial terms without pledging Group assets.