Neway Group Holdings Limited (00055) announced that its wholly owned subsidiary, Grand Prospects Finance International Limited, signed a new loan agreement on 12 March 2026 with Fran Vick And Company Limited (Borrower/Mortgagor) and its director Mr. Wong Yuet Leung, Frankie (Guarantor). The facility totals HK$8.00 million, carries interest of 1.5% per month (18% per annum), and matures on 12 March 2027 after a 12-month tenor. Interest is payable monthly, while principal is due at maturity; optional early repayment requires at least one month’s written notice.

Key transaction features:

• Collateral: Second mortgage over a residential unit and car park at Tregunter Path, Mid-Levels, Central, Hong Kong, independently valued at HK$40.05 million on 26 February 2026. • Loan-to-value: Combined LTV of 47.91% (27.93% first mortgage to another mortgagee; 19.98% second mortgage to Neway subsidiary). • Purpose: Part of the proceeds will fully settle the HK$5.00 million outstanding principal of a previous loan granted on 14 April 2025. • Funding source: Internal resources of the Group.

Regulatory implication:

Aggregating the HK$8.00 million facility with the prior HK$5.00 million loan pushes the highest applicable percentage ratio above 5% but below 25%. Under Chapter 14 of the Hong Kong Listing Rules, the arrangement is treated as a discloseable transaction, triggering notification and announcement requirements without shareholder approval.

Rationale and risk assessment:

The loan aligns with Neway Group’s ordinary course money-lending operations. Management cites the prime-site collateral, a repeat borrower with satisfactory history, and the short tenor as factors supporting a “relatively low” credit risk profile. Terms were reached on normal commercial basis after arm’s-length negotiations and benchmarked against prevailing market rates.