BRIGHTSTAR TECH (08446) subsidiary entered into a financing agreement with Shenzhen Chuanglid Supply Chain for a principal amount of 100 million yuan.

BRIGHTSTAR TECH (08446) announced that on March 15, 2023, its subsidiary Shenzhen Xinhang entered into a financing agreement with borrower Shenzhen Chuanglide Supply Chain Co., Ltd. for a principal amount of 100 million RMB. Shenzhen Xinhang was informed by the borrower that they could refer information technology consulting service projects to Shenzhen Xinhang, with a total contract amount of about 500 million RMB. The borrower successfully referred two clients to Shenzhen Xinhang, who conducted information technology system upgrades for government agencies in Nanjing and Guangdong, China in April and May 2023, respectively. However, no income was confirmed from these referrals as they only reached the stage of signing a Memorandum of Understanding (MOU) and were not realized due to disagreements on service fees between Shenzhen Xinhang and the two clients. As a result, Shenzhen Xinhang requested full repayment of the loan. The full amount of the loan was repaid on March 27, 2024. The announcement stated that the terms of the loan agreement were negotiated between the group and the borrower based on fair principles, taking into account the borrower's fund requirements, the business relationship between the group and the borrower, the borrower's background, and the potential benefits to the group. The group provided a loan to the borrower to offer additional working capital for the purchase of information technology hardware for their information technology transactions. According to the financing agreement, the borrower was to make efforts to refer clients to Shenzhen Xinhang for information technology consulting services in major transactions. Under this business cooperation arrangement, the information technology hardware would be purchased and established by the borrower, while information technology consulting services, system upgrades, and specific software development would be provided by Shenzhen Xinhang.