ZXZN Qi-House Holdings Limited (8395) disclosed that its wholly owned subsidiary, Super Easy Finance Limited (SE), entered into 22 loan assignment agreements with Flexi Credits Limited (FC) between 2 September 2024 and 17 March 2025. Under these agreements, SE acquired loans with a total principal amount of HK$8.77 million at the same aggregate consideration.

FC is majority-owned by a family member of the company’s co-chairman and chief executive officer, making it a connected person under the GEM Listing Rules. Since the transactions with FC took place within 12 months and were similar in nature, they were aggregated, resulting in a connected transaction subject to reporting and announcement requirements under Chapter 20 of the GEM Listing Rules.

The 22 loans involved 18 individual borrowers with an interest rate of 3.9% per month. Repayments largely consisted of monthly interest installments, with principal amounts due at maturity. The company noted that no overdue amounts existed as of the announcement date.

As consideration for administrative services, FC is entitled to a 25% share of interest income generated from the assigned loans. The company stated it had checked borrowers’ credit histories, employment information, and loan repayment records as part of due diligence before finalizing the assignments.

Due to an oversight, the company did not announce the transaction promptly when the aggregate amount of the loan assignments surpassed HK$3 million. It has now outlined remedial measures including enhanced internal training, closer collaboration with external advisers, and strengthened internal control reviews to ensure future compliance with the GEM Listing Rules.