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Medlive Technology Co., Ltd. Capital/Financing Update 2019

Oct 17, 2019

50436_rns_2019-10-17_b145f3a3-462d-4e6a-a7f5-ce762ea9b565.pdf

Capital/Financing Update

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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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HISENSE HOME APPLIANCES GROUP CO., LTD. 海信家電集團股份有限公司

(A joint stock limited company incorporated in the People’s Republic of China with limited liability) (Stock Code: 00921)

DISCLOSEABLE TRANSACTIONS

SUBSCRIPTION OF WEALTH MANAGEMENT PRODUCTS

At the fifth extraordinary meeting for the year 2019 held by the tenth session of the Directors on 21 June 2019 and the 2019 second extraordinary general meeting of the Company held on 29 August 2019, a resolution on entrusted wealth management of idle self-owned funds of the Company was considered and approved. Subject to the investment risk control by the Company and the principles of improving efficiency of the use of capital and increasing return on cash assets, the entrustment of idle self-owned funds of not more than RMB9,000,000,000 to commercial banks to conduct shortterm and low-risk investment for wealth management was approved.

The Board is pleased to announce that, on 17 October 2019, Refrigerator Marketing Company, a non-wholly owned subsidiary of the Company, as subscriber, entered into (i) the 2019 CZBank Third Wealth Management Agreement to subscribe for the 2019 CZBank Third Wealth Management Product in the subscription amount of RMB300,000,000 (equivalent to approximately HK$332,430,000); and (ii) the 2019 CZBank Fourth Wealth Management Agreement to subscribe for the 2019 CZBank Fourth Wealth Management Product in the subscription amount of RMB300,000,000 (equivalent to approximately HK$332,430,000).

Before the 2019 CZBank Third Wealth Management Agreement and the 2019 CZBank Fourth Wealth Management Agreement were entered into by Refrigerator Marketing Company, (i) on 11 September 2019, Refrigerator Marketing Company, as subscriber, entered into the 2019 CZBank First Wealth Management Agreement to subscribe for the 2019 CZBank First Wealth Management Product in the subscription amount of RMB300,000,000 (equivalent to approximately HK$332,430,000); and (ii) on 26 September 2019, the Company, as subscriber, entered into the 2019 CZBank Second Wealth Management Agreement to subscribe for the 2019 CZBank Second Wealth Management Product in the subscription amount of RMB60,000,000 (equivalent to approximately HK$66,486,000).

The Group utilised its idle funds for the payment of the subscription amount under each of the CZBank Wealth Management Agreements.

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Each of the 2019 CZBank Third Wealth Management Agreement and the 2019 CZBank Fourth Wealth Management Agreement by itself does not constitute discloseable transaction of the Company under Rule 14.06 of the Listing Rules. However, pursuant to Rule 14.22 of the Listing Rules, when the relevant subscription amounts under the CZBank Wealth Management Agreements are aggregated, the relevant applicable percentage ratios (as defined under the Listing Rules) of the transactions under the CZBank Wealth Management Agreements exceed 5% but are lower than 25%. Therefore, the transactions under the CZBank Wealth Management Agreements, on an aggregate basis, constitute discloseable transactions of the Company and are subject to the reporting and announcement requirements under the Listing Rules.

At the fifth extraordinary meeting for the year 2019 held by the tenth session of the Directors on 21 June 2019 and the 2019 second extraordinary general meeting of the Company held on 29 August 2019, a resolution on entrusted wealth management of idle self-owned funds of the Company was considered and approved. Subject to the investment risk control by the Company and the principles of improving efficiency of the use of capital and increasing return on cash assets, the entrustment of idle self-owned funds of not more than RMB9,000,000,000 to commercial banks to conduct shortterm and low-risk investment for wealth management was approved.

The Board is pleased to announce that, on 17 October 2019, Refrigerator Marketing Company, a non-wholly owned subsidiary of the Company, as subscriber, entered into (i) the 2019 CZBank Third Wealth Management Agreement to subscribe for the 2019 CZBank Third Wealth Management Product in the subscription amount of RMB300,000,000 (equivalent to approximately HK$332,430,000); and (ii) the 2019 CZBank Fourth Wealth Management Agreement to subscribe for the 2019 CZBank Fourth Wealth Management Product in the subscription amount of RMB300,000,000 (equivalent to approximately HK$332,430,000).

Before the 2019 CZBank Third Wealth Management Agreement and the 2019 CZBank Fourth Wealth Management Agreement were entered into by Refrigerator Marketing Company, (i) on 11 September 2019, Refrigerator Marketing Company, as subscriber, entered into the 2019 CZBank First Wealth Management Agreement to subscribe for the 2019 CZBank First Wealth Management Product in the subscription amount of RMB300,000,000 (equivalent to approximately HK$332,430,000); and (ii) on 26 September 2019, the Company, as subscriber, entered into the 2019 CZBank Second Wealth Management Agreement to subscribe for the 2019 CZBank Second Wealth Management Product in the subscription amount of RMB60,000,000 (equivalent to approximately HK$66,486,000).

The Group utilised its idle funds for the payment of the subscription amount under each of the CZBank Wealth Management Agreements.

Summarised below are the major terms of the CZBank Wealth Management Agreements:

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(A) (B) (C) (D)
2019 CZBank 2019 CZBank 2019 CZBank 2019 CZBank
First Wealth Second Wealth Third Wealth Fourth Wealth
Management Management Management Management
Agreement Agreement Agreement Agreement
(1) Date of 11 September 2019 26 September 17 October 2019 17 October 2019
subscription: 2019
(2) Name of CZBank RMB CZBank RMB CZBank RMB CZBank RMB
product: Wealth Wealth Wealth Wealth
Management Management Management Management
Product (Exclusive Product Product (Exclusive Product (Exclusive
Finance (Exclusive Finance Finance
No.1 90-Day Finance No.1 90-Day No.1 188-Day
Model (Product No.1 182-Day Model (Product Model (Product
Code Model (Product Code Code
Z119090018))* Code Z119090019))* Z119188007))*
(浙商銀行人民幣 Z119182020))* (浙商銀行人民幣 (浙商銀行人民幣
理財產品(專屬理 (浙商銀行人民幣 理財產品(專屬理 理財產品(專屬理
財1號90天型 理財產品(專屬 財1號90天型 財1號188天型
Z119090018)) 理財1號182天 Z119090019)) Z119188007))
型Z119182020))
(3) Parties: (i) CZBank as (i) CZBank as (i) CZBank as (i) CZBank as
issuer issuer issuer issuer
(ii) Refrigerator (ii) the Company (ii) Refrigerator (ii) Refrigerator
Marketing as subscriber Marketing Marketing
Company as Company as Company as
subscriber subscriber subscriber

To the best of the Directors’ knowledge, information and belief having made all reasonable enquiry, CZBank and its ultimate beneficial owner(s) are third parties independent of the Company and its connected persons.

(4) Type of Open-end and non-principal-guaranteed with floating return product:

(5) Risk Relatively low rating of product:

(6) Principal RMB300,000,000 RMB60,000,000 RMB300,000,000 RMB300,000,000 amount of (equivalent to (equivalent to (equivalent to (equivalent to subscription: approximately approximately approximately approximately HK$332,430,000) HK$66,486,000) HK$332,430,000) HK$332,430,000)

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(7) Currency Renminbi
of
subscription:
(8) Term of 90 days 182 days 90 days 188 days
investment:
(9) Expected 4.12% per annum 4.18% per annum 4.10% per annum 4.18% per annum
maximum
rate of
return:

(10) The CZBank Wealth Management Products invest in bonds, money market Investment instruments, interbank deposits, trust plans, assets earning rights, money market scope of the funds, bond funds, asset securitisation products etc. that meet the requirements of product: the regulators and asset management plans that are in accordance with the abovementioned investment directions as well as other financial instruments that are permitted by policies, laws and regulations. (11) Payment The principal and return will be paid by CZBank to Refrigerator Marketing of return on Company or the Company (as the case may be) in a lump sum on the maturity date. principal upon maturity: (12) Right of Refrigerator Marketing Company or the Company (as the case may be) is not early entitled to early termination of the relevant CZBank Wealth Management Product. termination: CZBank is entitled to early termination of the relevant CZBank Wealth Management Product if Refrigerator Marketing Company or the Company (as the case may be) is in breach of the relevant CZBank Wealth Management Agreement, or there arises any adverse situation which affects the purpose of the relevant CZBank Wealth Management Agreement.

REASONS FOR AND BENEFITS OF THE SUBSCRIPTIONS

The approval procedures of the subscriptions of wealth management products by the Company are in compliance with the relevant requirements of the “Management Measures for Conducting Entrusted Wealth Management Transactions” (《委託理財管理制度》) of the Company. The subscriptions of the CZBank Wealth Management Products are made from the idle self-owned funds of the Group. Such use of the idle self-owned funds for entrusted wealth management is beneficial for enhancing efficiency of use of the idle self-owned funds of the Group and will not adversely affect the daily operation and the principal business development of the Group as well as the interests of medium and small investors of the Company.

The Board considers that the subscriptions of the CZBank Wealth Management Products are on normal commercial terms, fair and reasonable, and in the interests of the Company and the Shareholders as a whole.

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IMPLICATION UNDER THE LISTING RULES

Each of the 2019 CZBank Third Wealth Management Agreement and the 2019 CZBank Fourth Wealth Management Agreement by itself does not constitute discloseable transaction of the Company under Rule 14.06 of the Listing Rules. However, pursuant to Rule 14.22 of the Listing Rules, when the relevant subscription amounts under the CZBank Wealth Management Agreements are aggregated, the relevant applicable percentage ratios (as defined under the Listing Rules) of the transactions under the CZBank Wealth Management Agreements exceed 5% but are lower than 25%. Therefore, the transactions under the CZBank Wealth Management Agreements, on an aggregate basis, constitute discloseable transactions of the Company and are subject to the reporting and announcement requirements under the Listing Rules.

INFORMATION ON THE COMPANY AND CZBANK

The Company

The Company and its subsidiaries are principally engaged in research and development, manufacturing and marketing of electrical products such as refrigerators, household air-conditioners, central air-conditioners, freezers, washing machines, kitchen appliances, etc.

CZBank

CZBank is a branch of China Zheshang Bank Co., Ltd. (浙商銀行股份有限公司), a licensed bank incorporated under the laws of the PRC listed on the Stock Exchange (Stock code: 2016). China Zheshang Bank Co., Ltd. (浙商銀行股份有限公司) is principally engaged in corporate banking, retail banking and treasury business.

DEFINITIONS

In this announcement, unless the context otherwise requires, the following terms have the meanings set out below:

“2019 CZBank First Wealth Management Agreement”

the wealth management agreement entered into between Refrigerator Marketing Company and CZBank on 11 September 2019 in relation to the subscription of the 2019 CZBank First Wealth Management Product;

“2019 CZBank First the wealth management product subscribed under the 2019 CZBank Wealth Management First Wealth Management Agreement; Product”

“2019 CZBank Fourth the wealth management agreement entered into between Refrigerator Wealth Management Marketing Company and CZBank on 17 October 2019 in relation to the Agreement” subscription of the 2019 CZBank Fourth Wealth Management Product;

“2019 CZBank Fourth Wealth Management Product”

the wealth management product subscribed under the 2019 CZBank Fourth Wealth Management Agreement;

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“2019 CZBank Second the wealth management agreement entered into between the Company
Wealth Management and CZBank on 26 September 2019 in relation to the subscription of
Agreement” the 2019 CZBank Second Wealth Management Product;
“2019 CZBank Second the wealth management product subscribed under the 2019 CZBank
Wealth Management Second Wealth Management Agreement;
Product”
“2019 CZBank Third the wealth management agreement entered into between Refrigerator
Wealth Management Marketing Company and CZBank on 17 October 2019 in relation to the
Agreement” subscription of the 2019 CZBank Third Wealth Management Product;
“2019 CZBank Third the wealth management product subscribed under the 2019 CZBank
Wealth Management Third Wealth Management Agreement;
Product”
“Board” the board of Directors;
“Company” Hisense Home Appliances Group Co., Ltd. (海信家電集團股份有限
公司), a company incorporated in the PRC with limited liability, whose
shares are listed on the main board of the Stock Exchange and the
Shenzhen Stock Exchange;
“connected person(s)” has the meaning ascribed to it under the Listing Rules;
“CZBank” a branch of China Zheshang Bank Co., Ltd.* (浙商銀行股份有限公
司), a licensed bank incorporated under the laws of the PRC;
“CZBank Wealth collectively, the 2019 CZBank First Wealth Management Agreement,
Management Agreements” the 2019 CZBank Second Wealth Management Agreement, the 2019
CZBank Third Wealth Management Agreement and the 2019 CZBank
Fourth Wealth Management Agreement;
“CZBank Wealth collectively, the 2019 CZBank First Wealth Management Product, the
Management Products” 2019 CZBank Second Wealth Management Product, the 2019 CZBank
Third Wealth Management Product and the 2019 CZBank Fourth
Wealth Management Product;
“Director(s)” the director(s) of the Company;
“Group” the Company and its subsidiaries;
“HK$” Hong Kong dollars, the lawful currency of Hong Kong;
“Listing Rules” the Rules Governing the Listing of Securities on the Stock Exchange;
“PRC” the People’s Republic of China;

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“Refrigerator Marketing Guangdong Hisense Refrigerator Marketing Co., Ltd. (廣東海信冰箱
Company” 營銷股份有限公司), a company incorporated in the PRC with limited
liability and a non-wholly owned subsidiary of the Company;
“RMB” Renminbi, the lawful currency of the PRC;
“Shareholder(s)” the shareholder(s) of the Company;
“Stock Exchange” The Stock Exchange of Hong Kong Limited; and
“%” per cent.

In this announcement, for illustrative purposes only, amounts quoted in RMB have been converted into HK$ at the rate of RMB1 to HK$1.1081. No representation is made that any amount in HK$ or RMB could have been or could be converted at the above rate or at any other rates, or at all.

English translations of names in Chinese or another language in this announcement which are marked with “*” are for identification purposes only.

By order of the Board Hisense Home Appliances Group Co., Ltd. Tang Ye Guo Chairman

Foshan City, Guangdong, the PRC, 17 October 2019

As at the date of this announcement, the Company’s executive directors are Mr. Tang Ye Guo, Mr. Jia Shao Qian, Mr. Lin Lan, Mr. Dai Hui Zhong, Mr. Fei Li Cheng and Mr. Wang Yun Li; and the Company’s independent non-executive directors are Mr. Ma Jin Quan, Mr. Zhong Geng Shen and Mr. Cheung Sai Kit.

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