Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
Quanzhou Huixin Micro-credit Co., Ltd.*
泉 州 匯 鑫 小 額 貸 款 股 份 有 限 公 司
(Established in the People's Republic of China with limited liability)
(Stock Code: 1577)
CHANGE IN USE OF PROCEEDS
Reference is made to the prospectus of Quanzhou Huixin Micro-credit Co., Ltd.* (the ''Company'' or ''our'') dated 19 September 2016 (the ''Prospectus'') relating to the listing (the ''Listing'') of the Company's H shares on the main board of The Stock Exchange of Hong Kong Limited and the announcement of offer price and allotment results dated 29 September 2016 (the ''Allotment Results Announcement''). Unless otherwise defined, capitalized terms used in this announcement shall have the same meanings as defined in the Prospectus.
USE OF PROCEEDS
As set out in the section headed ''Future Plans and Use of Proceeds'' of the Prospectus, the Company estimated that it will receive net proceeds of approximately HK$266.1 million from the Global Offering (assuming the Offer Price of HK$1.65 per H Share, the Over-allotment Option is not exercised and after deducting the underwriting commissions and other estimated offering expenses payable by the Company). The Company intended to use the proceeds from the Global Offering for the purposes and in the amounts set forth below:
Approximately 65%, or approximately HK$173.0 million, will be used to enlarge the capital base of our loan business and to develop new products and services in order to satisfy the diverse financing and business needs from entrepreneurial individuals, SMEs and microenterprises;
Approximately 15%, or approximately HK$39.9 million, will be used for strategic acquisitions and investments in financial services providers;
Approximately 5%, or approximately HK$13.3 million, will be used to strengthen our sales network and marketing activities, upgrade IT system, develop innovative mobile client, as well as to enhance our employees' training programs and human resources;
Approximately 5%, or approximately HK$13.3 million, will be used to strengthen our internal control and risk management systems and establish long-term cooperation with third party credit information service providers; and
Approximately 10%, or approximately HK$26.6 million, for working capital and general corporate purposes.
CHANGES IN THE USE OF PROCEEDS
The H Shares of the Company became listed on the Main Board of the Stock Exchange on 30 September 2016. As set out in the Allotment Results Announcement, the net proceeds from the Global Offering is approximately HK$271.3 million (after deducting underwriting commissions, the incentive fees and other estimated expenses in connection with the Global Offering).
After careful consideration and detailed evaluation of the Company's operation, in order to efficiently utilize the net proceeds from the Global Offering and develop the Company's principal business to improve Shareholders' returns, the Board resolved to adjust the allocation of the use of proceeds from the Global Offering in the manner as set out below:
Approximately 75%, or approximately HK$203.5 million, will be used to enlarge the capital base of our loan business and to develop new products and services in order to satisfy the diverse financing and business needs from entrepreneurial individuals, SMEs and microenterprises;
Approximately 15%, or approximately HK$40.7 million, will be used for strategic acquisitions and investments in financial services providers;
Approximately 2.5%, or approximately HK$6.8 million, will be used to strengthen our sales network and marketing activities, upgrade IT system, develop innovative mobile client, as well as to enhance our employees' training programs and human resources;
Approximately 1.5%, or approximately HK$4.1 million, will be used to strengthen our internal control and risk management systems and establish long-term cooperation with third party credit information service providers; and
Approximately 6%, or approximately HK$16.3 million, for working capital and general corporate purposes.
Due to the relevant requirements stipulated by the SAFE, the expenses payable by the Company in connection with the Global Offering were not fully paid out of the proceeds from the Global Offering. Such expenses were settled by the Company using its own funds. As a result, the actual bank balance of the proceeds from the Global Offering amounted to approximately HK$292.3 million. The original and the revised allocation of the use of proceeds from the Global Offering based on the above actual bank balance is summarized as follows:
Item No.
Purposes as disclosed in the Prospectus
Original allocation (amounts adjusted on a pro-rata
basis)
Amount utilized as of the date of this announcement
Revised allocation (amounts adjusted on a pro-rata
basis)
The remaining balance based on
the revised allocation
(HK$ in millions) (HK$ in millions)
To enlarge the capital base of our loan business and to develop new products and
services in order to satisfy the diverse financing and
business needs from
entrepreneurial individuals, SMEs and microenterprises
Approximately
HK$190.0 million (approximately
65%)
Approximately
189.0
Approximately
HK$219.2 million (approximately
75%)
Approximately
30.2
For strategic acquisitions
and investments in financial services providers
Approximately
HK$43.8 million (approximately
15%)
0.0 Approximately
HK$43.8 million (approximately
15%)
Approximately
43.8
To strengthen our sales network and marketing activities, upgrade IT
system, develop innovative mobile client, as well as to enhance our employees'
training programs and human resources
Approximately
HK$14.6 million (approximately
5%)
Approximately 1.4 Approximately
HK$7.3 million (approximately 2.5%)
Approximately 5.9
To strengthen our internal control and risk
management systems and establish long-term
cooperation with third party credit information service
providers
Approximately
HK$14.6 million (approximately
5%)
Approximately 3.9 Approximately
HK$4.4 million (approximately 1.5%)
Approximately 0.5
For working capital and general corporate purposes
Approximately
HK$29.2 million (approximately
10%)
Approximately
16.8
Approximately
HK$17.5 million (approximately
6%)
Approximately 0.7
REASONS FOR THE CHANGES IN THE ALLOCATION OF THE USE OF PROCEEDS
The above changes in the allocation of the use of proceeds will allow the Company to deploy its financial resources more effectively and the Board considers that such changes will be more in line with the current business needs of the Company and are beneficial to the continued development of the Company, so as to strengthen the Company's overall market position as the largest licensed microfinance company in Fujian Province in terms of revenue in 2016.
The Board confirms that the revised use of the proceeds is in compliance with all the relevant PRC laws and regulations and has been approved by the Board, which was authorized by the Shareholders at the extraordinary general meeting of the Company held on 25 January 2016.
The Board is of the view that there is no material change in the nature of business of the Company as set out in the Prospectus and considers that the above changes in the allocation of the use of proceeds from the Global Offering is in the interest of the Company and its Shareholders as a whole.
By Order of the Board
Quanzhou Huixin Micro-credit Co., Ltd.* ZHOU Yongwei
Chairman
Fujian Province, the PRC, 29 August 2017
As at the date of this announcement, the executive Directors of the Company are Mr. ZHOU Yongwei, Mr. WU Zhirui, Mr. YAN Zhijiang and Ms. LIU Aiqin; the non-executive Directors are Mr. JIANG Haiying and Mr. ZHU Jinsong; and the independent non-executive Directors are Mr. SUN Leland Li Hsun, Mr. ZHANG Lihe and Mr. LIN Jianguo.
* For identification purposes only
Quanzhou Huixin Micro-Credit Co. Ltd. published this content on 29 August 2017 and is solely responsible for the information contained herein.
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