CHINA RUYI (00136) plans to acquire a 30% stake in Kuaiqian Financial Services (Shanghai) for 240 million yuan to expand its financial technology business.

CHINA RUYI (00136) announced that recently, its indirect wholly-owned subsidiary Shanghai Ruyi Xingchen Enterprise Management Co., Ltd. (buyer), Shanghai Wanda Network Financial Services Co., Ltd. (seller), and Kuaiqian Financial Services (Shanghai) Co., Ltd. (target company) have entered into a share transfer agreement. The buyer intends to acquire 30% equity of the target company from the seller for a cash consideration of RMB 240 million, to be paid in three installments. The target company obtained the third-party payment license issued by the People's Bank of China in 2011 and mainly provides comprehensive payment solutions for medium and large enterprises. It is actively expanding overseas, developing DIGIHUMAN RMB, launching various cross-border products such as cross-border payment and settlement, global acquiring, cross-border RMB settlement, overseas shopping, etc., and vigorously expanding cross-border business to provide comprehensive payment solutions for cross-border multiple scenarios. Upon completion, the company will become the largest single shareholder of the target company, but the target company will not become a subsidiary of the company, and the financial performance of the target company will not be consolidated into the group's financial statements. The target company should be accounted for as equity accounted in joint ventures. The company believes that the acquisition will help expand the group's business into the third-party payment and financial technology fields, and is expected to contribute to the long-term growth and development of the group. The target company is one of the fully licensed third-party payment institutions in mainland China, holding multiple payment business licenses including internet payment, mobile payment, bank card acquiring, and cross-border RMB payment, and has completed cross-border RMB record filing. The target company has accumulated rich merchant resources and industry experience in industries such as finance, insurance, air travel, retail, and cross-border, and has a solid market position and business foundation. Therefore, the company believes that the payment services of the target company can synergize with the group's existing businesses, including online streaming, online gaming services, and the offline cinema business of the company's indirectly invested subsidiary Wanda Film Holding Co., Ltd. In addition, the target company is also one of the first cooperative institutions of the People's Bank of China Digital Currency Research Institute, with the ability to fully accept DIGIHUMAN RMB, and actively participate in the application and promotion of DIGIHUMAN RMB and cross-border payment scenarios, with good policy orientation and technological innovation potential. The company believes that the acquisition will help expand the group's financial technology business, achieve business diversification, and through the industry resources, technological capabilities, and policy advantages of the target company, bring long-term strategic synergies and potential growth opportunities to the group.