Other Financial Services. Apart from the deposit services and the loan services, the other financial services which may be provided by Datang Finance Company to the Group mainly include entrusted loans services, finance leasing services, bill acceptance and discounting services, and so forth. The other financial services to be provided under the 2019 Financial Services Agreement will be on normal commercial terms and on terms similar to or even more favourable than those offered by other commercial banks for similar services in the PRC. The Directors (including the independent non- executive Directors) consider that the other financial services to be provided under the 2019 Financial Services Agreement are fair and reasonable and in the interests of the Shareholders as a whole. The Company expects that the highest of the applicable percentage ratios (as defined in Rule 14.07 of the Listing Rules) of the total fees payable by the Company to Datang Finance Company is below the de minimis threshold as stipulated under Rule 14A.76(1) of the Listing Rules and, therefore, is fully exempt from the requirements of reporting, announcement, annual review and the Independent Shareholders’ approval under Chapter 14A of the Listing Rules. The Company will comply with the requirements of reporting, announcement, annual review and the Independent Shareholders’ approval under Chapter 14A of the Listing Rules if the transaction amount of the other financial services to be provided by Datang Finance Company to the Group under the 2019 Financial Services Agreement exceeds the relevant threshold. By entering into the 2019 Financial Services Agreement, the Group is able to strengthen the capital management and control as well as the account management via the capital management platform of Datang Finance Company, which would further increase the utilisation efficiency of capital as well as lower and prevent financial risks. Furthermore, the entering into of the 2019 Financial Services Agreement supplements the financing needs of the Group effectively. By broadening the Group’s financing channels through Datang Finance Company, there would be an increase in the source of funds which would elevate the level and efficiency of overall operations of enterprise capital, and which would strengthen the bargaining power of the Group in respect of external financing. Meanwhile, the 2019 Financial Services Agreement enables the Company to obtain higher interest rates for deposits than those in the market and to enjoy payment and settlement services at zero rate, thereby increasing the interest income on deposits and saving settlement costs, which could increase the operating profits of the Company. In view of the reasons above, the Directors (excluding the independent non-executive Directors whose views will be contained in the circular after considering the advice from the Independent Financial Adviser) consider that the capital risk control measures under the 2019 Financial Services Agreement are adequate to prevent the risks involved in depositing the funds of the Group at Datang Finance Company and that the 2019 Financial Services Agreement and the transactions contemplated thereunder are fair and reasonable, have been entered into on normal commercial terms and in the ordinary and usual course of business of the Company, and are in the interests of the Company and the Shareholders as a whole.
Appears in 1 contract
Sources: Financial Services Agreement
Other Financial Services. Apart from the deposit services and the loan services, the other financial services which may be provided by Datang Finance Company to the Group mainly include payment and settlement services, entrusted loans loan services, finance leasing services, bill acceptance and discounting services, and so forth. The other financial services to be provided under the 2019 2022 Financial Services Agreement will be on normal commercial terms and on terms similar to or even more favourable than those offered by other national commercial banks in the PRC for similar services. Particularly, as to payment and settlement services, the settlement expenses shall be borne by Datang Finance Company; and as to entrusted loan services, the handling fees of entrusted loan services in shall not exceed 0.06% of the PRCactual principle amount occurred. The Directors (including the independent non- non-executive Directors) consider that the other financial services to be provided under the 2019 2022 Financial Services Agreement are fair and reasonable and in the interests of the Shareholders as a whole. The Company expects that the highest of the applicable percentage ratios ratio (as defined in Rule 14.07 of the Listing Rules) of the total fees payable by the Company to Datang Finance Company for other financial services is below the de minimis threshold as stipulated under Rule 14A.76(1) of the Listing Rules and, therefore, is fully exempt from the requirements of reporting, announcement, annual review and the Independent Shareholders’ approval under Chapter 14A of the Listing Rules. The Company will comply with the requirements of reporting, announcement, annual review and the Independent Shareholders’ approval under Chapter 14A of the Listing Rules if the transaction amount of the other financial services to be provided by Datang Finance Company to the Group under the 2019 2022 Financial Services Agreement exceeds the relevant threshold. By The Group’s financing needs will be effectively supplemented by entering into the 2019 2022 Financial Services Agreement. Through Datang Finance Company, the financing channels of the Group would be further expanded, the sources of funds would be broadened, thereby improving the overall operation level and efficiency of the Group’s funds as well as enhancing the bargaining power of the Group’s external financing. Also, by entering into the 2022 Financial Services Agreement, the Company could obtain deposit interest rate more favorable than market interest rate, and could enjoy the payment and settlement services of nil fee rate, which will be conducive to increase the deposit interest income and save the settlement cost. Furthermore, by entering into the 2022 Financial Services Agreement, the Group is able to could strengthen the capital management control and control as well as the account management via through the capital management platform of Datang Finance Company, which would is conducive to further increase improve the utilisation efficiency of capital as well as lower use and prevent reduce and avoid financial risks. Furthermore, the entering into of the 2019 Financial Services Agreement supplements the financing needs of the Group effectively. By broadening the Group’s financing channels through Datang Finance Company, there would be an increase in the source of funds which would elevate the level and efficiency of overall operations of enterprise capital, and which would strengthen the bargaining power of the Group in respect of external financing. Meanwhile, the 2019 Financial Services Agreement enables the Company to obtain higher interest rates for deposits than those in the market and to enjoy payment and settlement services at zero rate, thereby increasing the interest income on deposits and saving settlement costs, which could increase the operating profits of the Company. In view of the reasons above, the Directors (excluding including the independent non-executive Directors whose views will be contained in the circular after considering the advice from the Independent Financial AdviserDirectors) consider that the capital risk control measures under the 2019 Financial Services Agreement are adequate to prevent the risks involved in depositing the funds of the Group at Datang Finance Company and that the 2019 2022 Financial Services Agreement and the transactions contemplated thereunder are fair and reasonable, have been entered into on normal commercial terms and in the ordinary and usual course of business of the Company, and are in the interests of the Company and the Shareholders as a whole; and the capital risk control measures under the 2022 Financial Services Agreement are adequate to prevent the risks involved in placing the funds of the Group with Datang Finance Company.
Appears in 1 contract
Sources: Financial Services Agreement