Corporate digest

Yangzijiang Shipbuilding

A WHOLLY-OWNED subsidiary of Yangzijiang has agreed to provide a revolving credit facility of up to 1.56 billion yuan (S$301.7 million) to Jiangyin Xinyangchuan Enterprise Management Center, the mainboard-listed company said in a bourse filing late on Thursday.

Yangzijiang executive chairman Ren Yuanlin and his son, chief executive Ren Letian, have a 41 per cent stake in Xinyangchuan, which is a limited partnership established in China that invests in energy, manufacturing and property development companies.

The credit facility follows a master facility agreement signed between Xinyangchuan and Yangzijiang subsidiary Jiangsu New Yangzi Shipbuilding (JNYS) on April 16. Yangzijiang said the credit facility is beneficial to the group as it uses excess cash from JNYS's working capital requirements, and the interest payments represent an additional source of revenue for the subsidiary.

The credit facility will be used by Xinyangchuan strictly for its working capital requirements. It has an interest rate of 8 per cent per annum, accruing on a daily basis, and matures on March 31, 2025.

Kitchen Culture

CATALIST-LISTED Kitchen Culture Holdings on Friday signed a non-binding memorandum of understanding (MOU) with Chinese firm Ooway Technology, setting out key areas of understanding for its proposed acquisition of Ooway Technology's subsidiary.

Incorporated in China, Ooway has established a platform which uses machine learning and artificial intelligence to quantify corporate behaviour as credit value. With this system, Ooway provides credit-rating services for importers and exporters in China. As part of the strategic business review conducted by Kitchen Culture, the proposed acquisition gives the group an opportunity to explore new areas of business opportunities and to expand its footprint into other sectors, it said.

Separately, Kitchen Culture also requested that its trading halt on Monday morning be lifted.