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| Generating Synergies to Better Seize Market Opportunities |
HONG KONG, June 4, 2015 - (ACN Newswire) - China Huirong Financial Holdings Limited ("China Huirong" or the "Company", and, together with its subsidiaries, the "Group"; stock code: 1290.HK), a leading short-term secured financing services provider in China in terms of approved registered capital, is pleased to announce that at its 2014 Annual General Meeting ("AGM") and an Extraordinary General Meeting ("EGM") held on 28 May, 2015, proposals for the 2014 profit distribution plan and the acquisition of 40% of equity interests in Suzhou Wuzhong District Dongshan Agricultural Microfinance Co., Ltd., were respectively considered and approved. Other related proposals were also approved.
The Board recommended a final dividend of HK0.055 per ordinary share in cash for the period ended 31 December 2014. In addition, at the EGM, the Acquisition and all the transactions contemplated under the Agreement regarding the acquisition of 40% of equity interests in Suzhou Wuzhong District Dongshan Agricultural Microfinance Co., Ltd. at an aggregate consideration of RMB126.4 million (approximately HK$158.0 million) were approved and confirmed.
Dongshan Agricultural Microfinance Co., Ltd was recognized by the Finance Office in Jiangsu Province as having the highest "AAA" regulated rating. The registered capital of the company is RMB300 million. It is authorized to lend an aggregate principal amount of up to RMB600 million to customers. For the year ended 31 December, 2014, the net profit after taxation was RMB45.87 million and the book value of the total assets was RMB451.2 million (equivalent to approximately HK$564.0 million). After the acquisition, the company will strive for the development of not only the micro financing business, but also other types of guarantee business, including small and micro enterprises private bond, internet financing, entrusted loans and transferal of account payable.
Mr. Chen Yannan, Chairman and Executive Director of the Board of China Huirong, said, "In the past 15 years of development, China Huirong has expanded into being the first pawnshop in Jiangsu province with 13 branches and a leading short-term secured financing services provider in China, accumulating rich market experience. With the growth of the micro-financing business and the credit guarantee needs in Mainland China, together with the support from the nation, it is believed that the related businesses will experience continuous growth. Through this acquisition, the Group can enrich its product lines and generate synergies with the existing customer bases so as to lower operation costs, whilst, at the same time, it enables our customers to broaden their financing channels and facilitate the development of their businesses, empowering the Group to more effectively capture market opportunities. In the future, China Huirong will continue to capitalize on favorable macro factors and seize market opportunities to further expand its businesses in order to develop the Group into a comprehensive financial services provider offering a broader variety of financing solutions to a wider group of potential customers, and create more value for our shareholders."
About Suzhou Wuzhong District Dongshan Agricultural Microfinance Co., Limited
Suzhou Wuzhong District Dongshan Agricultural Microfinance Co., Ltd. is established under the laws of the PRC and its principal business activity is to provide microfinancing to microenterprises, individual entrepreneurs and individuals in Suzhou city, Jiangsu Province, the PRC and is recognized by the Finance Office with a the highest "AAA" regulated rating. The book value of its total assets as at 31 December 2014 was RMB451.2 million (approximately HK$564.0 million).
About China Huirong Financial Holdings Limited
China Huirong Financial Holdings Limited ("Huirong" or the "Company", and, together with its subsidiaries, the "Group"; stock code: 1290.HK) is a leading short-term secured financing service provider in China in terms of approved registered capital. The Group specializes in offering SMEs, business owners and individuals, short-term loans secured by real estate, equity interest or personal property collateral. The Group has been engaged in the Internet banking services business since early 2015. The Company has operated in Suzhou city and the four county-level cities that are governed by the Suzhou city government, or the Greater Suzhou Area, for more than 15 years. Through growth over the years, it now owns a sales network of 13 branches. With the continual growth in revenue, registered capital and loans portfolio, the Company maintains a leading position as a financing service provider in Jiangsu Province and in China.
Issued by Porda Havas International Finance Communications Group for and on behalf of China Huirong Financial Holdings Limited:
Porda Havas International Finance Communications Group
Ms. Kelly Fung Tel: + 852 3150 6763 kelly.fung@pordahavas.com
Ms. Camille Xiong Tel: + 852 3150 6799 camille.xiong@pordahavas.com
Ms. Coco Cheng Tel: + 852 3150 6795 coco.cheng@pordahavas.com
Ms. Rose Guo Tel: + 852 3150 6704 rose.guo@pordahavas.com
Ms. Jessica Li Tel: + 852 3150 6702 jessica.li@pordahavas.com
Fax: +852 3150 6728
Topic: Press release summary
Source: China HuiRong
Sectors: Daily Finance
https://www.acnnewswire.com
From the Asia Corporate News Network
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