BAIWANG CO (06657) entered into a convertible loan agreement with Global Intelligence Chain and Baiwang Cloud overseas.

BAIWANG CO (06657) issued an announcement that, on November 17, 2024, the company entered into a convertible loan agreement with Global Wisdom Chain and Baiwang Cloud Overseas. According to the agreement, the company agreed to provide a convertible loan totaling RMB 35 million to Baiwang Cloud Overseas for a period of one year, with an annual interest rate of 8%. If the loan amount is not fully repaid by the maturity date, it may be converted into equity in Baiwang Cloud Overseas. Baiwang Cloud Overseas is a limited company registered in China on October 18, 2024, fully owned by Global Wisdom Chain. It is expected to primarily engage in overseas business, including localization, development, and sales of tax compliance products for Chinese companies in countries and regions outside of China, as well as the implementation, upgrading, and licensing of related technologies overseas in accordance with local foreign laws and regulations. As of the date of this announcement, Baiwang Cloud Overseas has not yet commenced substantial business activities, nor has it entered into any agreements or arrangements with the company regarding potential business cooperation or transactions (excluding the convertible loan agreement). The company is a leader and major participant in China's SaaS tax digitalization industry. While the company intends to continue focusing on the domestic market and consolidating its leading position in China, it recognizes the tremendous growth potential in the emerging overseas market for digitalizing tax industries, as more governments globally are taking measures to promote digital transformation in tax management to drive economic growth and achieve efficient management. The company is confident in the future development of Baiwang Cloud Overseas, which will be led by Mr. Yang Zhengdao and his team. Mr. Yang Zhengdao is an outstanding entrepreneur and business leader with a strong track record in both the company and international large enterprises, widely recognized in the industry. The company believes that investing through convertible loans will enable it to receive stable interest income in the long term or benefit as a shareholder in the development of Baiwang Cloud Overseas. In both scenarios, the convertible loans will lay a solid foundation for future cooperation between the company and Baiwang Cloud Overseas, providing necessary funding support for the initial development of overseas operations, and ultimately helping expand the company's sales channels and establish global brand recognition. The convertible loan will not be disbursed from the net proceeds of the company's initial public offering (conducted on the Stock Exchange) completed in July 2024. In light of the above, the directors (including independent non-executive directors) believe that investing in Baiwang Cloud Overseas through convertible loans will help the company achieve a balanced domestic and international business strategy in a risk-controlled manner. The terms and conditions of the convertible loan agreement were reached through fair negotiations among relevant parties and are deemed fair and reasonable. Entering into the convertible loan agreement is in the best interest of the company and shareholders overall.