According to Zhitong Finance App, Rongzhong Finance (03963) announced that on February 26, 2024, the company entered into a sales agreement with Higashi Payment Technology Co., Ltd. (Hibao). The company conditionally agreed to sell, while Huitong conditionally agreed to acquire 49 shares of Hongtian Venture Capital (accounting for 49% of the total shares issued by Hongtian Venture Capital on the date of this announcement). The total cost of the sale was HK$6,000.

Hongtian Venture Capital is an investment holding company and a direct wholly-owned subsidiary of the company. As of the date of this announcement, Hongtian Venture Capital has not carried out any business and does not own any assets other than the nominal share capital of $100. After the sale is completed, Hongtian Venture Capital will own 51% and 49% respectively, and will be a non-wholly-owned subsidiary of the company.

On February 26, 2024, the company, Hiya and Hongtian Venture Capital entered into a shareholder agreement on the management and operation of Hongtian Venture Capital after the completion of the sale.

Hongtian Venture Capital's business shall include, but is not limited to, providing credit management services to money lenders in Hong Kong, China, including but not limited to conducting due diligence on customers regarding loans granted by money lenders and/or financial leasing services provided; and charging service fees for credit management services provided. The parties to the shareholder agreement agree that the existing business, business resources (in any form), customers, users and future business opportunities that have been generated by Hongtian Venture Capital itself belong to Hongtian Venture Capital.

The announcement stated that the purpose of entering into the sales agreement and shareholder agreement was to implement the proposed cooperation between the Group and Hiya. According to the agreement, Hirota Venture will become a strategic partner of the Group through the acquisition of 49% of Hongtian Venture Capital's shares, and Hongtian Venture Capital will become a service provider providing credit management services in Hong Kong, China. It is expected that both the company and Hiya will promote the business of Hongtian Venture Capital and provide relevant technical and other assistance to Hongtian Venture Capital within the scope of their expertise. While actively expanding its leasing business, the Group is also aware of the importance of diversifying revenue sources and has been exploring opportunities beyond the leasing industry to enhance the synergy between multiple platforms in our ecosystem. The directors believe that the proposed cooperation with Hiya under the agreement provides an opportunity for the company to further diversify its business products and operations in multiple regions; at the same time, they are committed to further strengthening and cultivating synergy effects in our established ecosystem. The directors believe that the terms of the agreement are fair and reasonable and conform to the overall interests of the company's shareholders.