FACTORING SERVICES TRANSACTIONS Sample Clauses

FACTORING SERVICES TRANSACTIONS. On 27 August 2020, the Board also agreed that, upon the expiry of the existing term of the Factoring Services Agreement on 4 November 2020, the term of the Factoring Services Transactions under the Factoring Services Agreement will be extended for one year, which is from 5 November 2020 to 4 November 2021. ACCA and Factoring Company are wholly-owned subsidiaries of the Company as at the date of this announcement. Eastern Airlines is a subsidiary of Eastern Holding and Eastern Holding is a substantial shareholder of the Company. Eastern Airlines is therefore a connected person of the Company pursuant to the Listing Rules. As such, the Factoring Services Transactions constitute continuing connected transactions of the Company. The Group has began to conduct Factoring Services Transactions with Eastern Airlines since November 2019. Since the highest applicable Percentage Ratio calculated with reference to the historical annual caps of the Factoring Services Transactions is less than 0.1%, the Factoring Services Agreement and the historical transactions contemplated thereunder are exempt from the announcement requirement under Chapter 14A of the Listing Rules. Since the highest applicable Percentage Ratio calculated with reference to the future proposed annual caps of the Factoring Services Transactions is more than 0.1% but less than 5%, the Factoring Services Transactions and the future proposed annual caps are subject to the announcement and annual review requirements but exempt from the independent Shareholders’ approval requirement of Chapter 14A of the Listing Rules.