Zhilong Holdings (08493): The enforced sale has released the Group from most of its repayment liabilities under PIL Loans and GP Loans

Zhitong Finance App News, Zhilong Holdings (08493) issued an announcement. As disclosed in the 2025 annual report, the Group's total bank and other loans as of December 31, 2025 were approximately HK$84.2 million, including approximately HK$15.9 million, that is the total outstanding amount owed by Quan Feng Harvest to Hang Seng Bank for property installment loans (PIL loans) granted by Hang Seng Bank Limited. The PIL loan used Quan Feng Harvest's property (the property) to set up Hang Seng Bank charge as collateral; and contract HK$10.3 million, or the total outstanding amount owed by Jinyi to Hang Seng Bank for certain loan financing (GP loans) granted by Hang Seng Bank. The GP loan was also secured by the property's placement of a charge against Hang Seng Bank.

In the process of due diligence on the possible transaction, the Company obtained a land search report on the property on September 18, 2026, and learned that Hang Seng Bank had exercised its security right and sold the property (enforced sale) on March 5, 2026. According to the land search report, the property was sold for approximately HK$24.4 million. After the mandatory sale was completed, the Group no longer held any interest in the property. It is anticipated that the Group will not be able to recover any of the approximately HK$24.4 million proceeds from the sale, as such proceeds have been used to settle PIL loans and GP loans. Based on the proceeds from the sale of approximately HK$24.4 million and the carrying value of the property as at 31 December 2025 of approximately HK$24.7 million, the Group is expected to record a sale loss of approximately HK$300,000 as a result of the mandatory sale. Actual gains or losses recorded by the Group as a result of the mandatory sale are subject to a final review by the Company's auditors before being determined.

The Board of Directors believes that the enforced sale has removed most of the Group's repayment liabilities under PIL loans and GP loans, and since the property has been idle and has not been used by the Group for a long time, the enforced sale has not had a significant impact on the Group's business operations.

The Company is currently seeking professional advice to obtain further details on the enforced sale.