[Caihua Social News] sharing Group (03344-HK) announced that after the trading session on 18 October 2019, Chinakey Dignity Holdings Limited (hereinafter referred to as Chinakey), an indirect wholly-owned subsidiary of the company, as the buyer, entered into a memorandum of understanding with the seller Asian Capital Partners Group Company Limited (hereinafter referred to as Asian Capital Partners Group), the guarantor and the company, under which Chinakey purchased Gold Bricks Holdings Limited (hereinafter referred to as Gold Bricks) for a total consideration of $150 million. The consideration will be repaid by issuing convertible bonds to Asian Capital Partners Group or its nominee.

Gold Bricks is directly wholly owned by Executive Director Huang Bin and is mainly engaged in investment holding.

Asian Capital Partners Group is currently arranging for the transfer of target assets to Gold Bricks. The target assets include accounts receivable totalling approximately HK $500m, together with security rights in any related pledged assets, including, but not limited to, certain loans provided by Asian Capital Partners Group and CITIC International Asset Management Company to CITIC Guotong Investment Management Company Limited and CITIC carbon Asset Management Company Limited. If the actual receivables received by the company are higher than the consideration (i.e. 150 million yuan), the company will pay an amount equal to 50% of the excess of the accounts receivable.

The conversion price of the convertible bonds is RMB0.12 per convertible share, and the closing price of the shares as quoted on the Stock Exchange on the last trading day is discounted by approximately 11.76% at RMB 0.136 per share.

The acquisition gives the group a good business opportunity to develop new types of business. As the consideration is fully repaid through the issue of convertible bonds, the company will not face any direct significant cash flow burden and will therefore be able to use its existing financial resources as general working capital or other investment opportunities for the Group.