The subscription price for this agreement is USD 5,000,000. After the completion of the subscription, the issued share capital of the JV Company will be owned as to 56% by CFSG. The joint venture company would mainly conduct banking business along the Belt and Road Initiative through ECF (acquired sandbox license for digital banking) and expected to start in the mid of 2020.
CFSG will contribute to the JV Company in the form of cash injection. APEX and VKV will contribute to the JV Company by providing consultation, advisory service to the JV Company throughout the establishment and initial setting up of the banking business through its established business network in Kazakhstan. Meanwhile, EBRI will facilitate the development of the JV Company by fully utilizing its existing management and operation platform.
The principal activities of the Group are wholesale and retailing of jewelry, money lending and distribution of pharmaceutical and healthcare products. The Group believes that the formation of the JV Company as an extension of existing lending business will allow the Company to tap into the fast- growing banking business in Kazakhstan and further expand its income source steadily, by leveraging on the combined expertise, facilities and resources of the parties.
Besides, with the opening of the Astana International Financial Center ("AIFC") in July 2018 and the continuous support on the "Belt and Road" initiative by the PRC government, many Chinese enterprises have been attracted to this region, including China Development Bank, China Construction Bank, Industrial and Commercial Bank of China, Bank of China, China International Capital Corporation, etc. Mr. Zhang Chunhua, Chairman & Executive Director of CBG said, "We are excited to enter into the Subscription Agreement with the JV Company successfully. The formation of the joint venture enables the Group to revel another new chapter. As Kazakhstan is seeking to make AIFC a leading financial centre in Asia, and the "Belt and Road" initiative to make AIFC an important RMB offshore centre, we believe that there will be large demand on banking and financing business in this region in the future. This subscription aims to provide multidimension banking and financial services (including online banking services) so as to maximize the revenue of the Group and increase the diversity of the business, which can elevate our market positioning remarkably. We also believe that this subscription can capture the huge business needs of corporate clients along the "Belt and Road" region across Asia, Europe and beyond, particularly in trade and supply chain financing.
Ms. Elizabeth Chung, Chief Executive Officer & Executive Director of CBG concluded, "Nowadays, digital banking has become the main trend because of the increasing demand on the multidimension banking and financial services. We believe that the Group can fulfill the marketing needs by JV company's business development and this subscription can capture the business opportunities to broaden the Group's revenue streams and maximize the interest of the Group and the investors. Looking ahead, we will continue to seek more investment and business opportunities to strengthen our market positioning."
About China Brilliant Global Limited
China Brilliant Global Limited ("CBG") was incorporated in the Cayman Islands in 1989 and listed on the Growth Enterprise Market of the Hong Kong Stock Exchange in March 2000. Since 2018, CBG is devoted to pursuing its business restructure and diversifying its revenue base to jewelry trading and retailing, lending business as well as pharmaceutical and healthcare products business.
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source http://www.acnnewswire.com/press-release/english/56593/