Pu’er Lancang Ancient Tea Secures RMB45.8 Million Three-Year Working Capital Loan

Pu’er Lancang Ancient Tea Co., Ltd. ( (HK:6911) ) has provided an update.

Pu’er Lancang Ancient Tea Co., Ltd. has entered into a new working capital loan contract with the Lancang Lahu Ethnic Autonomous County Branch of Agricultural Bank of China Limited, securing a RMB45.8 million facility with a three-year term. The loan’s interest will be based on the Loan Prime Rate with a fixed spread, payable monthly, and is fully secured by multiple real estate properties owned by a wholly owned subsidiary.

The company intends to use the new loan to repay an existing facility from the same lender, thereby diversifying its financing channels, replenishing operational capital, and optimising its liability structure. The board, including independent non-executive directors, views the arrangement as fair, commercially reasonable and beneficial to shareholders, underscoring the company’s effort to strengthen its balance sheet and maintain financial flexibility amid its ongoing operations in the tea sector.

The most recent analyst rating on (HK:6911) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Pu’er Lancang Ancient Tea Co., Ltd. stock, see the HK:6911 Stock Forecast page.

More about Pu’er Lancang Ancient Tea Co., Ltd.

Pu’er Lancang Ancient Tea Co., Ltd. is a PRC-incorporated joint stock company listed in Hong Kong that operates in the tea industry through Pu’er Lancang Ancient Tea Renhe Co., Ltd. and other subsidiaries. The Group focuses on producing and selling Pu’er and related teas, supported by owned real estate assets in Yunnan province that can be pledged as collateral for financing.

Average Trading Volume: 9,344

Technical Sentiment Signal: Sell

Current Market Cap: HK$141.5M

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