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| Consolidates Investor's Strengths, Explores Business Opportunities in the PRC and Hong Kong and Further Diversifies Business |
HONG KONG, Dec 13, 2016 - (ACN Newswire) - Alltronics Holdings Limited ("Alltronics" or the "Group") (Stock code: 833), a leading electronic products manufacturer and a provider of energy-saving business solutions, has announced the official passage of the resolution in relation to the allotment and issue of 23,437,980 new shares to the investor Wealth Channel Global Limited ("Wealth Channel") by its shareholders at today's extraordinary general meeting. The subscription shares represented approximately 4.67% of the Group's existing issued share capital and approximately 4.46% of its enlarged issued share capital. The price for each subscription share was HK$1.49 with net proceeds amounting to approximately HK$34,600,000.
Wealth Channel's principal business is investment holding. It is an indirect wholly-owned subsidiary of Huarong Investment Stock Corporation Limited ("Huarong Investment;" stock code: 2277). Huarong Investment is owned as to 27.99% by China Huarong International Holdings Limited ("China Huarong") indirectly. With a diversified business operations strategy and the strong financial position of China Huarong and Huarong Investment, as well as their prominent background and business connections, the subscription helps the Group to explore more business opportunities in the PRC and Hong Kong. Besides, with Huarong Investment as a strategic investor, the subscription also enhances the Group's borrowing power and fund raising ability in Hong Kong at comparatively more favorable terms to finance any future investment opportunities, if required.
Reviewing the past year, the Group has strived to develop its existing businesses and at the same time has actively brought in strategic investors to further diversify its business. Apart from this subscription, the Group has also entered into a share subscription agreement with Lijiang Investment Holdings Limited, a wholly-owned subsidiary of China Huarong, in August of this year to allot and issue approximately 52,600,000 new shares. The agreement is intended to strengthen the capital base and financial position of the Group for future business development, broaden its shareholder base and demonstrate investors' strong confidence in the Group's business strategies and prospects. To further consolidate operational strengths, the Group has purchased a floor of Citicorp Centre, Hong Kong during the year for long-term investment purposes and as its head office in Hong Kong. Subsequently, the Group has actively captured potential growth opportunities in the PRC property market by acquiring Pretty Shopping Centre in Beijing to enhance its investment property portfolio in a bid to further diversify its income sources and generate stable returns. The acquisition of Pretty Shopping Centre is still in process and is subject to shareholders' approval.
Mr. Lam Yin Kee, Chairman of Alltronics, said, "Alltronics deeply believes that the subscription will lay a solid financial foundation for the Group's diversification and align with the shareholders' overall interests. Meanwhile, the introduction of this strategic investor will also bring more valuable resources to the Group, including low-cost financing advantage and other investment opportunities and therefore could contribute to realising the Group's long-term development strategy. Looking ahead, we will continue to actively develop the existing businesses, devote greater effort to expand the product mix and customer base, and take full advantage of our investors' business networks and expertise to explore new investment opportunities in both the PRC and Hong Kong as we expand the scope and scale of our business, so as to bring higher returns to our shareholders."
Contact:
Strategic Financial Relations Limited
Vicky Lee Tel.: +852 2864 4834 Email: vicky.lee@sprg.com.hk
Katrina Leung Tel.: +852 2864 4857 Email: katrina.leung@sprg.com.hk
Hawaii He Tel.: +852 2864 4847 Email: hawaii.he@sprg.com.hk
Topic: Press release summary
Source: Alltronics Holdings Limited
Sectors: Electronics, Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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