Jisheng Group Holdings (08133) announced that the company and its joint venture partners will establish three branches on January 20, 2023...
Zhitong Finance App News, Jisheng Group Holdings (08133) announced that the company and its joint venture partner signed a joint venture agreement to establish three joint ventures on January 20, 2023.
As stated in the company's previous announcements and circulars, the purpose of the joint venture agreement is to establish a joint venture company to carry out authorized services for brands including but not limited to cultural industries and restaurants in Hong Kong, mainland China and overseas. According to the joint venture agreement, the total investment in the joint venture is agreed not to exceed HK$30 million, while the investment ratio of the company and the joint venture partners in the joint venture agreement will be 51% and 49%, respectively. A joint venture agreement will not be effective until the specified conditions have been met, including internal approval by each contracting party.
However, as of the date of this announcement, Joint Venture I and Joint Venture II have not commenced business operations, and Joint Venture III has not yet been established in accordance with the Joint Venture Agreement.
The contracting parties entered into a termination agreement to terminate the joint venture agreement on April 5, 2024. Each contracting party is exempted from its funding and all other responsibilities and liabilities under the joint venture agreement. No contracting party has paid or payable any termination fees or other compensation for the termination of the joint venture agreement.
The company reached an agreement with other contracting parties and decided to terminate the joint venture agreement because of the uncertainty brought about by close monitoring and evaluation of China's recent economic developments, particularly in its real estate market. The board of directors believed that a more cautious approach should be taken in implementing the company's plans to develop cultural-related business in China.