HONG KONG, Sept. 24, 2015 /PRNewswire/ -- The board of directors of Oi Wah Pawnshop Credit Holdings Limited (HKEx stock code: 1319, the "Group" or "Oi Wah") announced that, the Group entered into a memorandum of understanding (the "MOU") with CITIC Capital Finance (Cayman) Limited ("CITIC Capital") on 24 Sep 2015, in relation to the formation of a cooperative relationship, which both parties intend to cooperate in developing mortgage loan businesses and implementing a mutual customers referral plan.
According to the MOU, both parties will: (a) jointly develop mortgage loan businesses in the form of any business model as appropriate; (b) provide syndicated mortgage loans for satisfying the customers' needs in large loan amounts; and (c) develop a mutual customers referral plan.
The Group and CITIC Capital intend to develop a sustainable cooperative relationship. Both parties believe that the cooperation will improve their overall operational efficiency, reduce operational costs, expand mortgage loan businesses and increase the parties' market shares in the mortgage loan business industry, as well as creating greater commercial values for each other.
Mr. Chan Kai Ho, Chairman, Chief Executive Officer and Executive Director of Oi Wah Pawnshop said, "The Group is optimistic about the mortgage loan business industry. We believe that the MOU provides a great opportunity for the parties to benefit from better allocation of resources and help to diversify the Group's risk on money lending, broaden its income sources and customer base. In addition, the long-term cooperation between the parties will help the Group maintain its status and further consolidate its position in the mortgage loan business industry."
About Oi Wah Pawnshop Credit Holdings Limited
Oi Wah is a financing service provider in Hong Kong, mainly providing secured financing, including pawn loans and mortgage loans. According to the Ipsos Report, Oi Wah is the largest pawn loan service provider in Hong Kong in 2011 in terms of loan amount granted and number of pawnshops, and has been constantly growing since. The Group established its first pawnshop in 1975 and currently owns 12 pawnshops in various locations in Hong Kong. Oi Wah diversified into mortgage loan business in 2009.
