EVA Precision Secures HK$200 Million DBS Loans Tied to Founders’ Control

Eva Precision Industrial Holdings Limited ( (HK:0838) ) has shared an update.

EVA Precision Industrial Holdings’ indirect wholly owned unit Digit Technology Corporation has secured two credit facilities from DBS Bank (Hong Kong) Limited, comprising a HK$100 million term loan with a three-year tenor from first drawdown and a HK$100 million revolving term loan with up to one-year repayment per drawdown. The loans come with strict covenants tying them to the continued control and board roles of founders Zhang Hwo Jie and Zhang Yaohua, meaning any change in their shareholding or positions could trigger default or early repayment, underscoring lenders’ focus on management stability and potentially limiting flexibility around future ownership or leadership changes.

Under the facilities, the controlling shareholders must retain at least 35% of the company’s voting share capital and remain as chairman and executive director respectively, with DBS empowered to cancel the facilities and demand immediate repayment if these conditions are breached. The shareholders currently control Prosper Empire Limited, which holds about 38.94% of EVA Precision, and also directly own roughly 5.10% of the company, reinforcing their central role in governance and the bank’s reliance on their continued involvement as a condition for ongoing financing.

The most recent analyst rating on (HK:0838) stock is a Hold with a HK$0.94 price target. To see the full list of analyst forecasts on Eva Precision Industrial Holdings Limited stock, see the HK:0838 Stock Forecast page.

More about Eva Precision Industrial Holdings Limited

EVA Precision Industrial Holdings Limited is a Hong Kong-listed company incorporated in the Cayman Islands, operating through subsidiaries in precision industrial manufacturing. Its businesses typically involve providing engineered components and related services to customers in sectors that rely on high-specification, large-scale production capabilities.

YTD Price Performance: -2.41%

Average Trading Volume: 2,547,864

Technical Sentiment Signal: Sell

Current Market Cap: HK$1.4B

See more data about 0838 stock on TipRanks’ Stock Analysis page.