Jinye Holdings (08356): Settlement acceptance notes

According to the Zhitong Finance App, Jinye Holdings (08356) announced that Profit Station Limited (issuer), a wholly-owned subsidiary of the company, previously issued acceptance notes with a capital amount of HK$4.54 million. As at 31 March 2026, the carrying value of the acceptance notes was approximately HK$44.2 million. At the date of this announcement, the outstanding amount under the acceptance notes was approximately HK$52.1 million, including principal amount of HK$4.54 million and accrued interest of approximately HK$7.06 million. On July 31, 2026, the issuer and the bill holder entered into a settlement agreement. According to this, the issuer agreed to pay, and the bill holder agreed to accept a total amount of HK$5.28 million (settlement amount) to fully and finally settle the outstanding amount under the acceptance note, and fully discharge all of the issuer's obligations and liabilities under it. As of the date of this announcement, the issuer has settled the settlement amount of HK$5.28 million in accordance with the Deed.

The settlement amount is a mutual agreement between the issuer and the note holder after considering the financial situation of the group, the long-term outstanding nature of the acceptance notes, the propensity of the note holder to recover cash immediately and the certainty of repayment, and current market conditions.

Due to settlement, the acceptance notes have been fully settled, and the issuer's obligations and liabilities under the acceptance notes have been completely exempted and relieved. The Group expects to obtain a one-time income (unaudited) of approximately HK$38.92 million on debt settlement, the difference between the book value of the acceptance notes of approximately HK$44.2 million and the settlement amount of HK$5.28 million on March 31, 2026. Once the settlement is completed, any actual interest expenses or other non-cash financing expenses relating to the acceptance notes will no longer be recognized in the Group's consolidated income statement for future financial periods.

According to the company's consolidated financial position statement of March 31, 2026 as set out in the annual report, the Group's total liabilities are expected to be reduced to approximately HK$128.3 million after the settlement is completed, while the Group is expected to reverse from net liabilities of approximately HK$31.6 million to net asset value of approximately HK$7.3 million. The actual financial impact of the settlement on the Group and the proceeds obtained under the settlement are subject to final review by the company's auditors before they can be realized, and may differ from the above estimates.