JF SMARTINVEST (09636) plans to acquire Yintech Financial and its core information system to enter the overseas financial industry.

JF SMARTINVEST (09636) announced that on April 3, 2025, the company entered into a sale and purchase agreement with Silverlink Holdings, the target company Yintech Financial, and Shanghai Feixiu (an indirect subsidiary of Silverlink Holdings). According to this agreement, the company conditionally agreed to acquire all the shares of the target company and purchase the core information system. The company is expected to pay approximately HK$108.8 million for the acquisition of all the shares of the target company and HK$18.16 million for the purchase of the core information system. The target group, through its subsidiaries Fangde Securities and Fangde Capital, conducts regulated activities defined in Class 1, 2, 4, 5, and 9 under the Securities and Futures Ordinance. Its main businesses include securities and futures brokerage, investment advisory, asset management, discretionary account management, and wealth management, focusing on providing comprehensive financial investment, wealth management services, and solutions to individuals and institutional clients. As the company's first step in going international, the target group has accumulated rich business resources and experience, providing the company with a good opportunity to enter the overseas financial industry. By integrating these licensed businesses, the company aims to expand its cross-border financial service layout, strengthen its coverage capabilities in key markets such as the Hong Kong Stock Exchange, the New York Stock Exchange, and through Stock Connect programs, and enhance its industry competitiveness and influence. As of the first quarter of 2025, the target group has been profitable. In terms of operating performance, the average monthly trading volume of securities transactions is expected to increase by over 80% compared to the monthly average in 2024; the scale of fund distribution is expected to increase by more than 20% compared to the end of 2024; and the asset management scale for providing full discretionary asset management services is expected to increase by more than 100% compared to the end of 2024. Therefore, this acquisition is expected to bring long-term benefits to the company, expand revenue sources, optimize income structure, reduce potential risks from a concentration on a single market, and enhance the company's adaptability in the complex and ever-changing financial market environment. This acquisition includes the core information system used by the target group, which has been specifically tailored for their needs and continuously upgraded based on business requirements. This system covers securities, futures, and fund counter systems, providing strong support for centralized trading management, clearing and settlement, and risk management in various business scenarios for the target group. The company's acquisition of the core information system used by the target group will ensure the continued stable operation of the business, avoiding costs and risks associated with system transitions.