HONG KONG, June 25 /PRNewswire-Asia/ -- Xinyu Hengdeli Holdings Limited (“Xinyu Hengdeli” or the “Company” and its subsidiaries, the “Group”; stock code: 3389), a leading enterprise engaged in retail and distribution sales of renowned international watch brands in China, announced that the Group has successfully completed the share placing amounted to HK$602 million.
Xinyu Hengdeli is a leading enterprise engaged in the retail and distribution sales of renowned international watch brands in China and has made remarkable achievement over the past years of development. The use of proceeds from the placing will mainly be used for the further business development of the Group but not in any other businesses. The usage includes (1) the acquisition of the existing retail network in the central and south western regions in China which will further strengthen the retail sales coverage of the Company in these regions. After the acquisition, the total number of the Company’s retail outlets in the mainland China will be increased by 10-15%; (2) the opening and expansion of 10-20 self-operated retail outlets in strategic regions; (3) continue to develop the business of its own brands including OLMA; and (4) as general working capital of the Group.
Meanwhile, Shenzhen Xinyu Watches Company Limited, Xinyu Hengdeli’s wholly-owned subsidiary, had obtained credit facilities of RMB400 million from Bank of China, Shenzhen Branch, which includes a 5-year term loan facility of RMB200 million and a 1-year term cash flow loan of RMB200 million. Besides, Shenzhen Xinyu Watches received a RMB250 million loan facility from China Construction Bank Corporation, Shenzhen Branch, which includes a 2-year term loan facility of RMB150 million and 1-year loan facility of RMB100 million. The loan facilities enable the Group to optimize its debt structure and is beneficial to the Group’s sustainable development in the long run.
Chairman and CEO of Xinyu Hengdeli, Mr. Zhang Yuping, said, “We are pleased to complete the share placement successfully and to obtain the loan facilities from the Bank of China, Shenzhen Branch and the China Construction Bank Corporation, Shenzhen Branch. Through the years of concerted effort, Xinyu Hengdeli has established an extensive retail network covering the Mainland China, Hong Kong and Taiwan. At present, the Group owns more than 200 retail stores. Going forward, Xinyu Hengdeli will continue to work harder to achieve a steady and prudent development.”
For further information, please contact:
Porda International (Finance) PR Co., Ltd.
Ms. Helen Chung
Tel: +852-3150-6730 / +852-9585-5027
Email: helen.chung@pordafinance.com.hk
Ms. Kelly Fung
Tel: +852-3150-6763 / +852-9289-2974
Email: kelly.fung@pordafinance.com.hk
Fax: +852-3150-6728
