Haidilao International Holding has agreed to provide its founder and CEO, Zhang Yong, with a one-month loan of up to the Hong Kong dollar equivalent of 100 million yuan (approximately HK$117.2 million), according to a company filing on Monday. The loan will be funded from the company’s internal resources and carry an interest rate set at 0.6 percentage points above the one-month Hong Kong interbank offered rate.

The filing specifies that the funds are intended solely for Zhang’s personal financial arrangements and cannot be used to purchase Haidilao shares, issue loans or guarantees to third parties, or breach any listing or regulatory rules. The company has also reserved the right to monitor the use of the loan. Haidilao stated the loan will not impact its daily operations or business development and that the interest income will be beneficial to the group and its shareholders.

Although the filing did not provide further details on the loan’s purpose, the move has drawn speculation amid an upcoming tax deadline related to offshore trust arrangements. On July 24, Beijing introduced rules requiring mainland tax residents to pay a 20 percent individual income tax on gains and income derived from assets held in offshore trusts. Taxpayers were given a 90-day window to declare and settle outstanding taxes without penalties, a deadline that fell on October 22.

Zhang and his wife, Shu Ping, reportedly control about half of Haidilao’s shares through discretionary trusts and holding companies, according to company filings and Haidilao’s 2018 listing prospectus. Both Zhang and Shu are Singapore citizens, but individuals with foreign nationalities may still be considered mainland tax residents if their primary economic interests remain in mainland China—a criteria the new tax regulations have not explicitly defined. Haidilao’s interim report showed that around 96 percent of its revenue as of June originated in mainland China.

Following the announcement, Haidilao’s shares declined by about 3 percent, closing at HK$9.30. The company did not immediately respond to requests for further comment.