HONG KONG, July 10, 2023 /PRNewswire/ -- DL Holdings Group Limited ("DL Holdings" or the "Company"; Stock Code: 1709.HK) has recently announced the signing of a Memorandum of Understanding (MOU) regarding to the potential acquisition of the remaining stake in its affiliated company, DL Family Office (HK) Limited ("DL Family Office"), following the acquisition of 45% stake of DL Family Office in January 2023. The Group will acquire the remaining 55% stake of DL Family Office at a valuation of no more than HK$500 million. After the acquisition, DL Family Office will become a wholly-owned subsidiary of the listed DL Holdings Group.
Since the commencement of the acquisition in 2021, DL Holdings has acquired 45% of DL Family Office in a year and a half, then announced the complete acquisition half a year later. The swift acquisition progress demonstrates the rapid development and significant profits of family office business, which contribute to increased income and profits of the listed Company, the scale of asset under management (AUM), the number of customers and the extended service scope.
As Hong Kong's first financial institution to establish a multi-family office providing family legacy planning services, DL Family Office is a licensed corporation under the SFO and is permitted to carry on Type 4 regulated activity (advising on securities) and Type 9 regulated activity (asset management). The two subsidiaries under DL Family Office, DL Emerald Wealth Management and DL Advisory, offer insurance, family structure advisory, taxation, education and healthcare and other family office services. The current AUM of DL Family Office have reached US$2.3 billion (approximately HK$18 billion). The net profit of DL Family Office was HK$20 million in 2022 and expected to exceed HK$40 million in 2023. The listed DL Holdings will acquire 55% of DL Family Office at a valuation of no more than HK$500 million, involving an expected investment of HK$275 million.
As explained during the Annual General Meeting of DL Holdings, the Company recorded a revenue of HK$190 million and a gross profit of HK$102 million last year, with licensed financial services contributing a revenue of HK$126 million and a profit of approximately HK$38 million. The core business of DL Holdings generated a net profit, excluding financial costs and tax, of HK$20 million. The Company has achieved a record of distributing dividends in three consecutive years.
The family office business has always been the core business of DL Holdings. After the merger of family office business, the listed Company is gradually transforming into an asset management and financial service platform with the family office as the core business. DL Holdings aims to create a four-in-one wealth management model consisting of "family office + investment bank + investment bank".
Furthermore, DL Holdings has entered into a strategic partnership with Soochow Securities (Hong Kong). The two parties have launched all-round cooperation in the aspects of family office, wealth management, joint operation and equity, including docking domestic and overseas client resources, providing asset allocation strategies and investment products, and selling various financial products on behalf of each other, to jointly promote cross-border investment and wealth management between mainland China and Hong Kong, the Greater Bay Area, and even the Asia-Pacific region. The flagship strategic fund jointly managed by the two parties will be launched soon, and more asset management products will be introduced in the future.
About DL Holdings Group Limited (Stock Code: 1709.HK)
DL Holdings Group (1709.HK) is a Hong Kong-listed asset management and financial services platform with a core focus on investment banking business, covering securities trading, financial consulting, multi-strategy investment fund management, investment research, financial loans and other financial services. Its subsidiary, DL Securities, holds SFC licenses for Type 1 (securities trading), Type 4 (advising on securities) and Type 6 (advising on corporate financing) regulated activities. The Group's subsidiary, DL Capital, mainly provides asset management services, holding SFC licenses for Type 4 (advising on securities) and Type 9 (asset management) regulated activities. The Group's subsidiary, ONE Advisory, provides one-stop, bespoke and comprehensive global identity planning consulting services and solutions for high-net-worth individuals and families. The listed company also holds a Singapore RFMC fund license and a Cayman Islands SIBL fund license. The Group has established 18 limited partnership funds in Hong Kong, which mainly invest in private equity. The Group's subsidiary, Seazon Pacific, is committed to providing overall solutions for supply chain management.
