Zhitong Financial APP, Dah Sing Banking Group (02356) and Dah Sing Financial (00440) jointly announced that Dah Sing Bank (a wholly-owned subsidiary of Dah Sing Financial, which directly owns 74.37% of Dah Sing Banking Group) has terminated the Hong Kong distribution agreement between Dah Sing Bank, Taihe Life Insurance Company Limited (Taihe Life Insurance) and Taihe Services Co., Ltd., effective July 8, 2022.

Under the Hong Kong Distribution Agreement, Dah Sing Bank (a wholly-owned subsidiary of Dah Sing Banking Group) was appointed by Dah Sing Life Insurance Company Limited (now known as Taihe Life) as its non-exclusive insurance agent to distribute life insurance products in Hong Kong; and Taihe Life is the exclusive supplier of Dah Sing Bank's life insurance products in Hong Kong for distribution to Dah Sing Bank's retail customers for a period of 15 years respectively. Dah Sing Bank has received an advance payment of HK $1.972 billion as a consideration, and Taihe Life has agreed to pay a total of 10 equal deferred payments of HK $52.8 million each to Dah Sing Bank, of which Dah Sing Bank has received four deferred payments.

As the market is aware, negative news about Taihe Life, its intermediate holding company / ultimate holding company, related companies and / or controllers has continued to emerge over the past two years. Taihe Life also ceased to underwrite any new policies with effect from 8 February 2021 and the relevant sales are currently suspended indefinitely. In view of the above developments and Taihe Life's breach of the terms of the Hong Kong Distribution Agreement, Dah Sing Bank has issued a written notice to Taihe Life today to terminate the Hong Kong Distribution Agreement with immediate effect. Prior to the issue of such written notice, Dah Sing Bank had received a communication from Taihe Life Insurance to disagree with Dah Sing Bank's justifications for terminating the Hong Kong Distribution Agreement.