The Board of Directors and all directors of the Company guarantee that there are no false records, misrepresentations or major omissions in the announcement and take individual and joint responsibilities for the authenticity, accuracy and completeness of the contents of the announcement.
l Object name of capital increase : Boshen Financial Leasing (Shanghai) Co., Ltd. ( "Boshen Lease" for short)
l The amount of capital increase: the company intends to provide the sub company Boshen Lease with the capital increase of USD 37.5 million, and the company's wholly owned subsidiary, Feimaile Technology Co., Ltd. ("Feimaile" for short) intends to provide Boshen Lease with capital increase of USD 12.5 million. After the completion of this capital increase, the registered capital of Boshen Leasing will increase from the current USD 30 million to USD 80 million.
On September 7, 2016, the 33rd interim meeting of the 8th Board of Directors of the Company examined and adopted the Proposal on Consideration of Capital Increase of Boshen Financial Leasing (Shanghai) Co., Ltd., which shall be submitted to the Shareholders Meeting of the Company for the approval.
I. Overview of Capital Increase
According to the company's operating conditions and future development plan, in order to continuously enhance the overall competitiveness of Boshen Leasing, the company intends to provide the subsidiary Boshen Leasing with capital increase of USD 37.5 million, the company's wholly-owned subsidiary Feimaile intends to provide Boshen Leasing with capital increase of USD 12.5 million. After the completion of the capital increase, the registered capital of Boshen Lease will be increased from the current USD 30 million to USD 80 million, the company holds a 75% stake in Boshen Lease, the company's wholly owned subsidiary Feimaile holds a 25% stake in Boshen Lease.
The proposal has been examined and approved at the 33rd interim meeting of the 8th Board of Directors of the Company and submitted to the Shareholders' General Meeting for deliberation. The capital increase does not constitute a connected transaction. The independent directors issue the agreed independent opinions.
II. Basic Information of Capital Increase Object
Boshen Lease, registration number/uniform social credit code: 91310000329523501B; legal representative: Lanxun Hu; registered capital: USD 30 million, company funded USD 2.25 million, accounting for 75% of the registered capital, Feimaile Technology Co., Ltd, wholly owned subsidiary of the company, funded USD 0.75 million, accounting for 25% of the registered capital, the company holds a 100% stake through direct and indirect way; type: company with limited liability (Joint venture between Taiwan, Hong Kong, Macao and Mainland China); date of establishment: January 27th, 2015; address: Room 425, 4th Floor, Fute North Road No. 277, Polite Free Trade Zone, Shanghai China; business scope: finance lease; purchase leased property at home and abroad; disposal of salvage and repair of leased property; consultation and guarantee of leasing transaction; doing factoring business related to main business.
So far June 30, 2016, Boshen Lease owns total assets of 660.006 million yuan, net assets of 181.2411 million yuan, which achieved operation revenue of 59.6226 million yuan, net profit of 34.8843 million yuan from January to June in 2016. (without audition)
The change in equity before and after the capital increase is as follows:
III. Influence of the Capital Increase on Company and Analysis of Risk
The capital increase of the company to Boshen Lease is based on its condition of business development and a reasonable plan for future development needs, which is in line with the strategic needs of the company’s development; this capital increase is conducive to optimizing the financial structure of Boshen Lease, enhancing its financial strength and ability to business undertaking, improve the core competitiveness, profitability and ability to resistance risk of Boshen Lease, which is in line with the interests of the company and all shareholders; the company will strength the operating management and risk control of Boshen Lease and ensure the sustainable and stable development of Boshen Lease.
Shandong Tyan Home Co., Ltd.
Board of Directors
September 8, 2016