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Acquire Differ Cultural Tourism Development at the Consideration of RMB375 Million Extend Asset Management Business Chain to Value Asset Investment

Addtime:2017-11-23   Author:

[23 November 2017, Hong Kong] Differ Group HoldingCompany Limited (“DFH” or “Company”,Stockcode: 6878) together with its subsidiaries (“Group”) aleading provider of short- to medium-term financing and financing-relatedsolutions in the PRC, announced on 21 November 2017 (after trading hours), DifferAsset Development Limited (“Differ Asset”), a wholly-owned subsidiary of theCompany, will acquire the entire issued share capital of Differ CulturalTourism Development Company Limited (“Differ Cultural Tourism Development”) atthe consideration of RMB375,000,000. Upon the completion of acquisition, DifferCultural Tourism Development become the indirect non-wholly owned subsidiary ofthe Company and its financial results of will be consolidated into thefinancial results of the Group.

 

Differ Cultural Tourism Development currently has twoproperty development projects, namely Differ Sky Realm (鼎豐天境) and ChuZhou Fu Cheng (處州府城) in Lishui city, Zhejiang Province, the PRCthrough its subsidiaries, with an aggregate gross floor area of approximately471,679.1 sq.m. These two projects can be developed to a residential project anda commercial / cultural development project respectively. In addition, accordingto the unaudited financial statements of Differ Cultural Tourism Developmentfor the nine months ended 30 September 2017, its Profit before tax and Profitafter tax recorded approximately RMB20.8 million and RMB18.6 millionrespectively.

 

Mr. Ng Chi Chung, executivedirector and CEO of DFH stated, “The consideration of the acquisition isreasonable. The Group is full of confidence in capturing the developmentpotential brought by the local economic growth and benefit from the related governmentpolicies and we believe that such premium projects will become the new driverfor our profit growth. The point to be emphasized is that this acquisition isnot a simple real estate development project, but more of a showcase for ourasset management capability. Real estate is just one of the many differentclasses of assets in our portfolio. The acquisition will also benefit to the Group'scash flow and profit as the project is mature enough. It demonstrated that theasset management business development of the Group is diversifying fromnon-performing asset to including value asset investment. Leveraging on our successin asset management business and our competitive advantages, the Group canenhance its asset value after the resource consolidation and promote itprofitability. More importantly, not only that we can diversify in assetclasses, we are also extending our geographical coverage from Fujian Provinceto Zhejiang Province. In the future, the Group will proactively develop itsnon-performing asset management business while further exploring value assetswith high-growth potential in order to expand product mix and revenue base,bring new momentum to business growth and maximize the returns to our shareholders”   

 

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About Differ Group Holding Company Limited (stock code: 6878)

Headquartered in Xiamen,Differ Group Holding Company Limited mainly provides short- to medium-termfinancing and financing-related solutions for SMEs. The Group mainly offersfive types of financing and financing-related solutions, including 1) Finance LeaseServices; 2) Asset Management Services; 3) Express Loan Services; 4) FinancialGuarantee Services; and 5) Financial Consultant Services. DFH has continued toachieve remarkable business results and is seeking to develop new businesses tobroaden its income streams. In December 2016, the Group announced the formationof a joint venture for providing commercial factoring related services in thePRC. DFH was listed on the GEM Board of the Hong Kong Stock Exchange on 9December 2013 and has since transferred its listing to the Main Board on 6 July2015. The Group was selected as a constituent stock of the MSCI Small CapIndices – China Index in May 2015 and entered the Hang Seng Composite Index inMarch 2016.