HONG KONG, Oct. 19, 2016 /PRNewswire/ -- Gold-Finance Holdings Limited ("Gold-Finance Holdings" or "the Company") (Stock Code: 1462.HK), an affiliate of Gold-Finance Group, the largest wealth management company in Zhejiang Province, is pleased to announce that an indirectly wholly-owned subsidiary of the Company, Hangzhou Jinkai Yuanguan Investment Management Company Limited ("Jinkai Yuanguan") entered into a Limited Partnership Agreement ("the Agreement") with Shanghai Dealchord Asset Management Firm (Limited Partnership) ("Shanghai Dealchord") along with another Limited Partner in relation to the formation of Zhongxing New Town Industrial Investment Private Fund ("the Fund"), operating as a limited partnership, namely Ningbo Meishan Duty-Free District Jinyouding Investment Management Centre (Limited Partnership).
Under the Agreement, the Limited Partnership will last for seven years with a target Fund size of approximately RMB800 million. The objective of the Fund will be invested directly or indirectly in local governmental infrastructure projects in the form of a public-private partnership (''PPP'') model and other infrastructure related projects covering industries, including but not limited to, integrated urban development, comprehensive tourism development, urban rail transit, security housing, sponge cities and related services in healthcare, culture, entertainment and financial services.
The respective contribution of the Limited Partners is divided into two categories, namely the first class Limited Partner and the second class Limited Partner. Jinkai Yuanguan shall contribute RMB200 million to the Fund for the participating shares of the Fund as a second class Limited Partner, while another Limited Partner will contribute RMB600 million. Shanghai Dealchord has to make a required contribution of at least RMB1.00 and is responsible for making investment decisions for and provision of administrative and management services to the Fund as an Executive Partner of the Fund. Shanghai Dealchord has obtained the necessary licences and qualifications in the PRC for the management and promotion of the Fund.
After the deduction of relevant expenses and fees, Shanghai Dealchord shall distribute a return of 9% per annum over the capital contributions of the first class Limited Partner and the remaining investment return is distributed to the first class Limited Partner until it receives the amount of capital contributions which it has made to the Fund. The remaining investment return to Jinkai Yuanguan after the deduction of the above Shanghai Dealchord is not entitled to the distribution of the investment return, but is entitled to receive an annual management fee amounting to 1.5% per annum of the aggregate sum of the capital contribution made by the Limited Partners to the Fund.
Considering that the Fund will be well-managed by investment professionals, the Company expects that the Agreement will diversify the Company's investment risk and further enhance the rate of return of the Company's investment through access to a wider variety of investment channels in which the Company may not have access at present. The Agreement also provides the Company with an opportunity to manage its excess liquidity.
Wei Jie, the Chairman and CEO of the Company said, "Whilst the Company maintains its core businesses in the provision of building services in Hong Kong as subcontractor, we continuously explore investment opportunities to strengthen the long term growth of the Company. We are eager to form new private funds in the PRC to develop our asset management and investment business upon the completion of the acquisition of Hangzhou Jin Zhong Xing Investment Management Company Limited. We believe that our investment in the Fund presents an excellent platform for the Company to expand our business portfolio in the areas of investment and asset management."
About Gold-Finance Holdings Limited
Gold-Finance Holdings Limited, formerly Nga Chun Holdings Limited, was sold to parent company Gold-Finance Group on 15 December 2015 with 75% shares acquired, and the Group purchased the remaining amount on 26 January 2016. Currently, Wei Jie, Xu Li Yun, Jiang Junwei and Wong Kam Ting were appointed as Executive Directors of the Company. In April 2016, the Company formally changed its name to Gold-Finance Holdings Limited.
About Gold-Finance Group
Gold-Finance Group, a comprehensive modern finance group, features four business sectors including Gold-Finance Fortune, new urbanization, culture and education. Gold-Finance Fortune is the largest global wealth management company in the Zhejiang Province, focusing on the development and selling of high-end wealth management products. With accumulated asset under management exceeding RMB30 billion and 60 branches around the world, it is one of the most influential brands in Zhejiang Province. In recent years, the Group began to expand and explore its new town development business. Through the cooperation with local governments in capital, construction and operation, the Group has helped to achieve modern financial driven new urbanization for the local governments. In terms of culture, the Group's main focus is in media investment. The Group is the main investor of "The Mermaid", the highest-grossing film in China. In education, the Group established a partnership with Xi'an Jiantong Liverpool University, sponsoring the School of Finance and School of Media. The Group also actively expanded its PPP business in recent years. In the first half of 2016, the accumulated amount of the Group's signed PPP contracts reached RMB150 billion, focusing on the infrastructure in Zhejiang, Jiangsu and Anhui Province, including investments in subways, bridges, tunnels, highways and sewage treatment plants.
