Million Cities Holdings Limited announced a major transaction involving a new share-mortgage arrangement to back a RMB500.00 million flipper term-loan facility agreed on 14 January 2026 with United Overseas Bank Limited (Hong Kong Branch).
The borrower, Union Mark Limited—wholly owned by Fortune Radiant City Limited—has drawn down the facility to refinance RMB550.00 million of matured debt that expired on 28 December 2025. The new loans fall due on 30 December 2028, with an optional 18-month extension subject to lender consent and no continuing default.
Interest will be the lower of (i) a fixed rate to be set on first utilisation or (ii) 1-month HIBOR plus a 2.0% margin for the first six months; thereafter the rate equals HIBOR plus the 2.0% margin.
To secure repayment, Million Cities’ wholly owned subsidiary, Million Cities Development Limited (MC Development), will grant a first-ranking share mortgage over its 37.7% holding in Fortune Radiant (the “Mortgaged Shares”) and related rights. The pledged stake corresponds to a maximum secured exposure of roughly RMB188.50 million, matching MC Development’s proportional interest. Ms. Teresa Wong, holding the remaining 62.3% of Fortune Radiant, will execute a separate but inter-conditional share mortgage on identical terms.
The arrangement qualifies as (i) a major transaction under Chapter 14 of the Hong Kong Listing Rules, requiring shareholder approval, and (ii) an exempted connected transaction under Chapter 14A because the security is provided strictly in proportion to Million Cities’ equity stake and on normal commercial terms.
An extraordinary general meeting will be held at 10:30 a.m. on 14 April 2026 in Tai Po, Hong Kong to seek approval for the share-mortgage deed. Controlling shareholder Fortune Speed, which owns 75.00% of the issued shares, will abstain from voting.
Management states that Fortune Radiant maintains a positive net asset value and stable rental income, and views the credit risk as manageable with low likelihood of enforcement of the pledged shares.