Sino Fortune Holding Corporation (OTCQB: SFHD) ("Sino Fortune" or the "Company"), a leading online financial credit facility solution provider servicing SME and individual borrowers in China, today announced that Benefactum Alliance Business Consultant (Beijing) Co., Ltd., the variable interest entity of the Company, has signed a framework agreement (the "Framework Agreement") to acquire a minority equity interest in Shenzhen TouZhiJia Financial Information Service Co., Ltd. ("TouZhiJia"), an operator of a P2P online lending and vertical search platform, www.touzhijia.com.
Pursuant to the Framework Agreement executed by and between the Company and the three selling shareholders of TouZhiJia, consisting of Huiping Huang, Wei Deng, and Tianyi Zhang (collectively, the "Selling Shareholders"), the Company has agreed to acquire a 4.45% equity interest in TouZhiJia from the Selling Shareholders for an aggregate purchase price of RMB19.10 million (approximately US$2.8 million). The purchase price is subject to adjustment based on the Company's due diligence investigation of TouZhiJia and may be payable by the Company in cash or by issuing Company equity or debt securities (or a combination of the foregoing).
"TouZhiJia has been an important partner for Sino Fortune as we rely on its vertical search engine to generate leads and to promote our brands," said Bodang Liu, Chairman and Chief Executive Officer of Sino Fortune. "Both economically and strategically, TouZhiJia represents a unique opportunity for us to advance our ambition of becoming a leading online financial credit facility solution provider."
About Shenzhen TouZhiJia Financial Information Service Co., Ltd.
Shenzhen TouZhiJia Financial Information Service Co., Ltd. ("TouZhiJia") operates a P2P online lending and vertical search platform, www.touzhijia.com, which caters to investors by providing professional and P2P services designed to make investment and financing safer and more efficient. TouZhiJia's main businesses include vertical P2P search engine, private wealth management, and secondary loan exchange services. Since its inception in September 2014, the TouZhiJia platform has accumulated 2.74 million registered users and facilitated 1.98 million transactions with aggregate transaction value of more than RMB 15.63 billion (approximately US$2.30 billion). TouZhiJia is an affiliate of Yingcan Group.
About Sino Fortune Holding Corporation
Founded in 2013, Sino Fortune Holding Corporation ("Sino Fortune") is a leading online financial credit facility solution provider servicing under-served SME and individual borrowers in China. Through operating an electronic online financial platform, www.hyjf.com, the Company matches investors with SME and individual borrowers in China. The Company also sets aside risk reserve funds with the aim of limiting losses to investors from borrower defaults. In addition, the company provides investors with access to a liquid secondary market, giving them an opportunity to exit their investments before the underlying loans become due. For more information, please visit: ir.hyjf.com.
This press release may contain projections or other forward-looking statements regarding future events or our future financial performance. All statements other than present and historical facts and conditions contained in this release, including any statements regarding our future results of operations and financial positions, business strategy, plans and our objectives for future operations, are forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). These statements are only predictions and reflect our current beliefs and expectations with respect to future events and are based on assumptions and subject to risk and uncertainties and subject to change at any time. We operate in a very competitive and rapidly changing environment. New risks emerge from time to time. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. Actual events or results may differ materially from those contained in the projections or forward-looking statements.
Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.
For investors and media inquiries please contact:
At the Company:
Tony Tian, CFA
Weitian Group LLC