Zhitong Financial APP, Kexi Holdings (08173) announced that on June 8, 2022, the board of directors has approved and submitted a relevant form to Fuwei, allowing the company's indirect wholly-owned subsidiary BTR (as the holder and beneficiary of the policy) to withdraw the value from the life insurance policy according to the surrender value (after deducting the surrender fee charged by Fuwei). The net proceeds from the withdrawal of value will be used as the general working capital of the Group.
The surrender value is the cash value of the life policy on the date of withdrawal, with reference to the accumulated gross premiums paid, plus the accumulated interest earned, less the accumulated life policy expenses received and any surrender fees. As at the date of this announcement, the total surrender value of the life insurance policy is approximately HK $8.199 million.
As the effective date of the extracted value will be agreed by Fuwei and BTR upon proper receipt of all surrender requirements issued by Fuwei, the surrender value at the effective date of the extracted value may be different.
On 3 September 2019, BTR entered into a life insurance policy with Fuwei against Mr. Chen (who resigned as chairman, chief executive, executive director, supervisory officer and authorized representative of the company on 4 March 2022). According to the life insurance policy, BTR is the policy holder and beneficiary. BTR has paid a bulk premium of approximately HK $8.042 million for the Life Policy to set up the Life Policy. BTR may request surrender of the life insurance policy at any time and receive cash according to the surrender value.
Fuwei is a limited company incorporated in Bermuda. It is a financial services company providing a wide range of financial products and wealth management services.
In view of the fact that the extracted value is almost balanced, after careful and careful consideration by the Board, it is considered that the company can increase the cash level of the Group as general working capital.