China Innovative Finance Group Limited("CIFG", stock code: 0412.HK) announced that CIFG has entered into a non-legally binding Strategic Cooperation Agreement with Taiping Petrochemical Financial Leasing Co., Ltd. ("Taiping Leasing'") on 8 April 2016 (after trading hours). Taiping Leasing is a company jointly established by Taiping Life Insurance Co., Ltd., a subsidiary of China Taiping Insurance Holdings Company Limited, and China Petrochemical Corporation. The Strategic Cooperation Agreement for a term of 2 years will be automatically extended upon its conclusion unless either party disagrees.
According to the Strategic Cooperation Agreement, Taiping Leasing will grant a general credit facilities for the leasing business of CIFG and its financial leasing companies. The parties will commence their cooperation in the joint leasing business and sharing project earnings based on the source of business, the ratio of capital contributions and other factors, and will also actively refer quality leasing projects to the other party for development. CIFG will provide international leasing business services to Taiping Leasing with reference to the specific requirements of the financial leasing projects. The parties have agreed that the acquisition and disposal of leasing assets will be conducted by way of listing on Shenzhen Asia-Pacific Leasing Assets Exchange Center Co., Ltd. ("LAECAP"), a subsidiary of CIFG.
Moreover, CIFG will give priority to Taiping Life Insurance Co., Ltd. to be the business partner in property insurance business for the Company's owned leasing projects. Where customers seek to raise working capital through equity financing, debt issuance and asset securitisation, and where non-performing assets and interests might have occurred to customers served by the parties, the parties will give priority to LAECAP as a business partner. In the course of developing the leasing business and other businesses, the parties will cooperate to provide funding support to each other in a reasonable manner whenever short-term financing arrangements are required in connection with the business structure, and will commence cooperation in equity investment if the conditions are appropriate.
Mr. Yau Wai Lung, Executive Director of CIFG said, "Backed by CIFG's competitive strengths, the Group has successfully developed a number of business segments, including financial leasing, financial assets trading platform (i.e., LAECAP), investment in listed securities and financial lending. The Company is of the view that entering into the Strategic Cooperation Agreement will enable the Group to leverage on the extensive experience of Taiping Leasing in financial leasing and that of China Taiping in general financial services in the Group's development of the financial leasing and general financial service businesses in both PRC and overseas markets. In addition, it will drive business cooperation between the Group and Taiping Leasing for the building of a sound and stable long-term partnership where both parties will benefit from resource-sharing and strengths complementary between each others. Hence, the management is of the view that the terms of the Strategic Cooperation Agreement are in the interests of the Company and its shareholders as a whole."
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About China Innovative Finance Group Limited
China Innovative Finance Group Limited (stock code: 0412.HK) is a financial holdings institution listed on the main board of the Hong Kong Stock Exchange since April 1992. At the present, the Group's core business includes financial leasing, operation of an asset trading platform (Shenzhen Asia-Pacific Leasing Assets Exchange Center Co., Ltd. (referred to as "LAECAP")), equity investment, money leading, etc. The Company aims to provide an integrated financial platform offering a comprehensive spectrum of financial services by obtaining licenses and qualifications for banks, insurance, trusts, asset management and other financial institutions through partnership, equity investment or acquisition. CIFG has received continuous support from various renowned financial institutions in China, such as China Taiping Insurance Holdings Company Limited (stock code: 0966.HK), Haitong International and CCB International (Holdings), which have subscribed to the Group's convertible bonds, becoming strategic shareholders. CIFG is dedicated to becoming an integrated financial platform providing a comprehensive spectrum of financial services.
This press release is distributed on behalf of China Innovative Finance Group Limited by Anli Financial Communications Limited.
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