China High Speed Transmission Reveals Undisclosed 2016 Loan Guarantee and Listing Rules Breach

China High Speed Transmission Equipment Group Co ( (HK:0658) ) has provided an update.

China High Speed Transmission disclosed that its subsidiary Nanjing Xingang had, in January 2016, entrusted Ningbo Bank to extend a RMB400 million, three-year loan to Yijing for an LED sapphire crystal and substrate production line. On the same date, the company entered into an irrevocable joint and several guarantee for Yijing’s repayment obligations under this loan, which carried an annual interest rate of 6.3%.

The guarantee met the threshold for a discloseable transaction under Hong Kong Listing Rules, triggering reporting and announcement obligations that were not fulfilled at the time. The current board only discovered the arrangement during preparation of the 2025 consolidated financial statements, has found no record of prior board approval or timely disclosure, and is now implementing remedial measures to prevent future non-compliance, highlighting historical governance gaps but a present focus on regulatory rectification.