On June 25th, Gelunhui announced that Huixin Credit, a subsidiary of the company, entered into a purchase agreement with the seller. Huixin Credit agreed to purchase and the seller agreed to sell 0.16% of the equity of the target company, Jinjiang Huixin Small Loans Co., Ltd, for a consideration of approximately RMB 560,000 on June 25th, 2024.
During the same trading period, the company entered into a purchase agreement with the seller. As a result, the company agreed to purchase and the seller agreed to sell 22.88% of the equity of the target company for a consideration of approximately RMB 82.4 million.
As of the date of this announcement, the company holds 76.8% of the equity of the target company. After the completion of the acquisition, the group will hold approximately 99.8% of the equity of the target company, and the target company will continue to be a non-wholly-owned subsidiary of the company.
The target company is a licensed small loans company established on March 21, 2014 in Jinjiang City, Fujian Province, with a registered capital of approximately RMB 32 million as of the date of this announcement. The target company mainly provides small loans to local individuals, small and medium-sized enterprises, and micro-enterprises in Fujian Province.
The management team of the target company has nearly ten years of experience in the banking, finance and investment fields, especially in risk management, investment and financing, business operations and marketing. With a flat management structure and a profound understanding of the local market, the target company can meet the financing needs of its customers in a timely manner, and ensure the effectiveness of risk management and control through continuous optimization of its operations and review of its processes. The target company also conducts regular post-loan evaluations to keep loan risks under control. Therefore, acquiring the target company can not only introduce an experienced management team, but also strengthen the group's competitive advantage in the financial market by leveraging its sound risk management framework and efficient operational policies.