Alliance International Education Leasing Holdings Limited (Stock Code: 1563) announced the extension of two existing loans through its wholly-owned subsidiary. According to the disclosure, a principal amount of approximately HKD47,029,000 under one loan agreement has its maturity date extended from 24 September 2023 to 25 September 2024, carrying an annual interest rate of 24%. Another principal amount of HKD165,000,000 has its maturity date extended from 15 November 2023 to 15 May 2024, with an annual interest rate of 15%. Personal guarantees by the respective ultimate beneficial owners of the borrowers remain in place.

Pursuant to Chapter 14 of the Listing Rules, each extension triggers a discloseable transaction for the company. The company clarified that while the original grant of these loans was not subject to separate disclosure at inception, the extension constitutes new transactions under current regulatory expectations. These extensions were not announced at the time, and the company has now issued a formal disclosure to address the oversight.

Additional details were provided regarding the treatment of certain short-term loan receivables in the company’s 2024/25 Annual Report. The company recognized impairment losses on other receivables, adopting an expected credit loss model based on IFRS 9 requirements. The loss given default for these loans prompted references to Moody’s average ultimate debt recovery rates, leading to different recovery rate assumptions depending on the specific sources of potential recovery.

The announcement also outlined measures intended to prevent recurrence of similar delays, including enhanced staff training, strengthened internal controls, and regular consultation with professional advisers. Internal reporting and compliance processes are being reviewed to ensure timely fulfillment of all Listing Rules obligations going forward.