Entering the Financial Services and Asset Management Market
([-] March, 2016, Hong Kong) China Goldjoy Group Limited (“China Goldjoy” or the “Group”; stock code: 1282) is pleased to announce that the Group has entered into an agreement on 30 March 2016 to acquire 70% interest in China Yinsheng Asset Management Limited, China Yinsheng Securities Limited, China Yinsheng Wealth Management Limited, KB Bullion Limited, KB Credit Limited and KB Investment Limited (“Target Companies”). The initial aggregate consideration for the proposed acquisitions is HK$255,738,962 to be settled in cash and marks the Group’s entry into the financial services and asset management market.
Upon completion of the acquisitions, the Group would possess the relevant licenses through its subsidiaries. Thus it could provide a wide range of asset management and stock broking services in Hong Kong and private equity investment in the PRC, including securities trading, asset management, trading of futures contracts, trading of precious metals, foreign exchange trading and insurance, loans and credit financing services. For the year ended 31 December 2015, the Target Companies have reported approximately HK$74.93 million revenue and HK$25.13 million profit after tax in total respectively. According to the agreement, each Target Company would distribute not less than 30% but not more than 50% of its undistributed profit to its shareholders as dividends each year.
Mr. Yao Jianhui, Chairman and Chief Executive Officer of China GoldjoyGoldjoy, said, “Hong Kong continues its leading role as a global financial center and its financial services market offers huge development potential. The proposed acquisition provides a prime opportunity for the Group to enter the financial services and asset management markets in Hong Kong and build an integrated financial services platform, providing a new source of income as well as execute our diversified development strategy. We believe this acquisition will enhance shareholder value and benefit the Group and our shareholders as a whole.”
The transaction is subject to compliance with relevant regulations, the satisfaction of conditions precedent and obtaining other necessary approvals.
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About China Goldjoy Group Limited (Stock code: 1282)
China Goldjoy Group Limited, formerly known as World Wide Touch Technology (Holdings) Limited, is principally engaged in the development of a range of high technology products; trading and providing services with respect to automation-related equipment; securities investment; and strategic investment and development in technologies mainly relating to biometric security, high-speed wireless data transmission and communications. The Group is currently implementing a series of strategic transformation measures and will identify appropriate investment opportunities in such areas as integrated financial services, asset management, new energy and emerging industries. The Group will also strive to expand into new industries and new markets in executing its diversified development strategy.
China Goldjoy has been selected as the constituent of a number of Hang Seng indexes: Hang Seng High Beta Index, Hang Seng Internet & Information Technology Index, Hang Seng Global Composite Index, Hang Seng Composite Index Series - Hang Seng Composite Index, Hang Seng Composite Industry Index - Information Technology, Hang Seng LargeCap & MidCap Index, Hang Seng MidCap & SmallCap Index and Hang Seng MidCap Index. The Group is one of the eligible stocks under the Shanghai-Hong Kong Stock Connect scheme.
