HONG KONG — China Goldjoy Group Limited (“China Goldjoy” or the “Group”; HKEX: 1282), notes that certain media reports have alleged that the Group had not made full disclosure regarding its holding in New Sports Group Limited (“New Sports”; HKEX: 299;) and Bank of Zhengzhou Co., Ltd. (“Bank of Zhengzhou”; HKEX: 6196). The Group hereby clarifies as follows:
1. China Goldjoy Credit Limited (previously known as KB Credit Limited) (the “Lender”) is a 80%-owned subsidiary of the Group. The Lender is licensed under Hong Kong law to carry on the lending business. The Lender is principally engaged in the provision of financing supported by security in shares and property mortgage.
2. On 16 June, 2016, the Lender entered into a loan agreement with Amuse Peace Limited and Mr Zhang Xiaodong as guarantor. The relevant loan is secured by shares in New Sports. The Group has previously made an announcement on this loan.
3. The Lender has also entered into loan agreements with other borrowers. These loans are secured by a charge over the shares in Bank of Zhengzhou. The relevant borrowers have placed these shares in their shares in their accounts with China Goldjoy Securities Limited (previously known as China Yinsheng Securities Limited; “Goldjoy Securities”).
4. The aforementioned loan agreements have been entered into on commercial terms which are fair and reasonable to the Group and its shareholders as a whole.
5. Under the Securities and Futures Ordinance of Hong Kong (Cap. 571 of the laws of Hong Kong) (the “Ordinance”), the Lender is required to disclose its security interest in shares in Bank of Zhengzhou Co., Ltd. and New Sports Group Limited if the proportion that the shares that are subject to the share charge bear to the issued shares of the relevant Group reaches or exceeds the threshold prescribed under the Ordinance. As a result, Goldjoy Securitieshas disclosed its security interest in Bank of Zhengzhou Co., Ltd. and New Sports Group Limited. When the relevant loan is repaid, the related share charge will be released and there will be corresponding changes in the disclosure of the Group’s interest in the relevant shares. The Group was never engaged in acquiring the relevant shares, increasing its stake, reducing its stake and then re-increasing its stake as alleged in certain media reports.
China Goldjoy solemnly states that the Group and its subsidiaries have never beneficially owned equity interest in the Bank of Zhengzhou and New Sports. The untrue news reports of individual media are false interpretation of the disclosure rules of The Stock Exchange of Hong Kong. If clarification about those news reports is not made immediately, they will lead to significant adverse impact on the reputation of China Goldjoy and seriously mislead the securities market and investors. China Goldjoy requests those media to delete those false reports and make clarification accordingly to remind readers and those reposted the reports that the information about the Group those reports contained are untrue. – BusinessNewsAsia.com