Hanhua Financial Holding Co., Ltd. entered into equity transfer agreement to acquire remaining 14% equity interest in Chongqong Hanhua Micro-credit Co., Ltd. from Taoranju, Huiyuan Investment, Wu Fanfan and Li Qiujun for CNY 90.8 million.
August 04, 2022
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Hanhua Financial Holding Co., Ltd. (SEHK:3903) entered into equity transfer agreement to acquire remaining 14% equity interest in Chongqong Hanhua Micro-credit Co., Ltd. from Taoranju, Huiyuan Investment, Wu Fanfan and Li Qiujun for CNY 90.8 million on August 5, 2022. Under the terms of agreement, Hanhua Financial will acquire approximately 6%, 5%, 2% and 1% equity interest of Chongqing Micro-credit held by TaoRanju, Huiyuan Investment, Wu Fanfan and Li Qiujun, respectively, the total equity interest in Chongqing Micro-credit to be acquired by the Company is approximately 14%. Under the terms of consideration, The total consideration is CNY 90,837,990.58, whereby the consideration to be paid to TaoRanJu shall be CNY 38,930,567.39, the consideration to be paid to Huiyuan Investment shall be CNY 32,442,139.49, the consideration to be paid to Wu Fanfan shall be CNY 12,976,855.80, and the consideration to be paid to Li Qiujun is CNY 6,488,427.90. The consideration shall be paid to each of the Transferors in the following installments: (1) the Company will pay 30% of the consideration to the transferor after the completion of the industrial and commercial registration procedures and (2) the Company will pay 70% of the consideration to the transferor before 31 December 2022. Upon completion of the Equity Transfer, Chongqing Micro-credit will become a wholly owned subsidiary of the Company and the financial results of Chongqing Micro-credit will continue to be consolidated into the Company's financial results. Upon completion of the Equity Transfer, the Company will become the sole shareholder of Chongqing Micro-credit, allowing the Company to have control over the management of Chongqing Micro-credit, which is conducive to the Company's overall management and development deployment of the whole micro-credit business. Chongqing Digital China Huicong Micro-Credit had CNY 717 million of assets for the year ending December 31, 2021.
The parties to the Equity Transfer Agreement shall apply to the relevant financial regulatory authority for approval of the equity transfer within 30 working days from the date of execution of the Equity Transfer Agreement. Upon obtaining the approval from the relevant financial regulatory authority, completion of the equity transfer shall take place before 30 September 2022.
Hanhua Financial Holding Co., Ltd. is principally engaged in the provision of diversified and comprehensive financial services to small and medium-size enterprise (SMEs) and microenterprises in China. The Company operates its business through five segments. The Guarantee and Entrusted Loan Business segment is engaged in the provision of guarantee and related consulting services to customers and the small and medium sized enterprises. The SME Lending segment is engaged in the provision of loan and services to the small sized and micro enterprises (SME enterprises) or the owners of SME enterprises. The Factoring Business segment is engaged in the provision of financing services to the small and medium sized enterprises. The Internet Financing Business segment is engaged in the provision of financial intermediary services and assets information services in the internet platforms. The Others segment is engaged in the aggregation of other non-significant business lines.
Hanhua Financial Holding Co., Ltd. entered into equity transfer agreement to acquire remaining 14% equity interest in Chongqong Hanhua Micro-credit Co., Ltd. from Taoranju, Huiyuan Investment, Wu Fanfan and Li Qiujun for CNY 90.8 million.
HANHUA FINANCIAL HOLDING CO., LTD. 
