BEIJING, URUMQI and
HANGZHOU, China, Aug. 12, 2019 /PRNewswire/ -- China Lending
Corporation ("China Lending" or the "Company") (NASDAQ: CLDC), a
non-bank financial corporation servicing micro, small and medium
sized enterprises in China, today
announced that its subsidiary, China Industrial Financial Holding
Group Co., Ltd. has entered into a framework agreement (the
"Agreement") with Zhejiang Zhongfeng Investment Management Co.,
Ltd. ("Zhongfeng"), pursuant to which Zhongfeng will either acquire
a 100% equity interest in Urumqi Fenghui Direct Lending Co., Ltd.
("Feng Hui"), a variable interest
entity of the Company primarily engaged in the microloan business,
or obtain control over and become the primary beneficiary of
Feng Hui through contractual
arrangements for a cash consideration of no less than RMB15,000,000. Feng
Hui primarily provides loan facilitation services to micro,
small and medium sized enterprises in the Xinjiang Uygur Autonomous
Region.
Ms. Jingping Li, co-founder and
chief executive officer of China Lending, commented, "The disposal
of Feng Hui allows us to improve our
liability position and convert our accounts receivables into cash.
The disposal will further improve our liquidity while eliminating
the majority of our debt and financing costs so that we can commit
our resources to the development of other financing business lines
with more promising prospects such as supply chain financing, asset
management, and insurance facilitation. In 2019, our investments in
new business lines through two subsidiaries have already achieved
meaningful results. We are currently in a step-by-step process of
developing financing services beyond direct lending in China's economically developed regions. The
disposal of Feng Hui is a decisive
step towards reinvigorating our growth."
About China Lending Corporation
Founded in 2009, China Lending is a non-bank financial
corporation and provides comprehensive financial services to micro,
small and medium sized enterprises, and individuals. China Lending
has headquarters in Urumqi, the capital of Xinjiang Autonomous
Region, and Hangzhou, the capital
of Zhejiang province. For more
information, please visit: www.chinalending.com.
Safe Harbor Statement
This announcement contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements relate to,
among others, the consummation of the proposed transaction, and can
be identified by terminology such as "may," "will," "expect,"
"anticipate," "aim," "estimate," "intend," "plan," "believe,"
"potential," "continue," "is/are likely to" or other similar
expressions. Such statements are based upon management's current
expectations of the consummation of the proposed transaction, and
relate to events that involve known or unknown risks, uncertainties
and other factors, all of which are difficult to predict and many
of which are beyond the Company's control. Further information
regarding these and other risks, uncertainties or factors is
included in the Company's filings with the U.S. Securities and
Exchange Commission. The Company does not undertake any obligation
to update any forward-looking statement as a result of new
information, future events or otherwise, except as required under
law.
IR Contact:
At the Company:
Katrina Wu
Email: wuxiaoqing@chinalending.com
Phone: +86-991-316-9617
Investor Relations:
Jack Wang
ICR Inc.
Email: ICR-TMT@icrinc.com
Phone: +1 646-224-6936
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SOURCE China Lending Corporation