Beijing Enterprises Water Group Limited (BEWG; 00371.HK) disclosed that on 11 August 2026 its wholly owned subsidiary, Rizhao Lanshan Yuntong Water Co., Ltd. (Lanshan Yuntong), signed a loan agreement with Beijing Enterprises Group Finance Co., Ltd. (BG Finance).
The facility: • Principal: RMB99.10 million (approximately US$13.70 million). • Tenor: 18 years from drawdown. • Interest: floating at the 5-year Loan Prime Rate (currently 3.50%) minus 0.61 percentage point; reset every 12 months. • Repayment: interest payable quarterly. • Security: pledge of all rights and benefits arising from the Build-Operate-Transfer (BOT) project for Lanshan District Sewage Treatment Plant, Rizhao City, capped at RMB99.10 million.
Use of proceeds: refinancing the outstanding bank loan tied to the Lanshan District sewage treatment quality-improvement and sludge projects, and settling remaining construction costs.
Connected-transaction status: BG Finance is an associate of BEWG’s controlling shareholders Beijing Enterprises Group Company Limited (BEGCL) and Beijing Enterprises Holdings Limited (BEHL). Consequently, both the loan agreement and the related pledge agreement are classified as connected transactions under Chapter 14A of the Hong Kong Listing Rules. When aggregated with a previous RMB140.00 million facility arranged with BG Finance on 18 May 2023, the applicable percentage ratios remain above 0.1% but below 5%. The transactions therefore require announcement and reporting only; shareholder approval, circular and independent financial advice are exempt.
Board view: The directors, including independent non-executive directors, consider the terms to be on normal commercial terms, fair and reasonable, and in the interests of the company and its shareholders. No director was required to abstain from voting.
Company overview: BEWG, incorporated in Bermuda and listed in Hong Kong, focuses on construction and operation of sewage and reclaimed water treatment, seawater desalination, piped-water distribution, urban services and hazardous-waste treatment across China and several overseas markets. Lanshan Yuntong operates sewage treatment and reclaimed-water reuse facilities in Rizhao. BG Finance, a non-bank financial services platform approved by the National Administration of Financial Regulation, is ultimately controlled by the People’s Government of Beijing Municipality through BEGCL.