Ninestar Corporation announces $289 million Hong Kong investment
July 6, 2023
Ninestar Corporation has unveiled plans to invest $289 million (€265 million) in establishing a wholly-owned subsidiary in Hong Kong. The investment aims to enhance overseas liquidity security, strengthen market credit, and optimise fund management, signalling the company’s strategic expansion and commitment to long-term growth.
Ninestar Corporation (Shenzhen 002180), a prominent multinational company, announced its intention to invest $289 million (€265 million) in establishing a wholly-owned subsidiary named Ninestar Xincheng Co., Ltd. (subject to final approval) with the English Name: Ninestar Unity of Interest Integrity Limited in Hong Kong. The company’s board of directors and board of supervisors reviewed and approved the proposal during their respective meetings held on 5 July 2023.
The primary objective of this foreign investment is to enhance the group’s overseas liquidity security, strengthen its overseas market credit, and optimise fund management and allocation efficiency. By establishing Ninestar Xincheng Co., Ltd., the company aims to reduce overall financial costs and eliminate foreign exchange exposure. This strategic move will also help safeguard against risks associated with Cayman borrowing due to currency differences and capitalise on favourable disparities in domestic and foreign tax policies and market prices.
The proposal received unanimous support with nine votes in favour and no abstentions or opposing votes. The independent directors also issued a positive independent opinion. As per the company’s “Articles of Association,” the investment falls within the scope of the board’s approval, eliminating the need for further deliberation at the general meeting of shareholders.
Importantly, this investment does not involve any related transactions and does not trigger the “Administrative Measures for Major Asset Restructuring of Listed Companies,” thereby exempting it from major asset restructuring requirements.
The foreign investment is expected to impact the company’s operations positively. It will ensure the security of the company’s overseas liquidity, bolster overseas credit lines, and further solidify its market credit abroad. Moreover, mitigating foreign exchange risks and capitalising on differences in tax policies and market prices is anticipated to enhance cost savings and profitability in the long run. The statement reassured stakeholders that the investment would not affect operating results or the interests of listed companies and shareholders.
The new subsidiary is subject to receiving approvals from development and reform authorities, commerce authorities, foreign exchange management authorities, and other relevant regulatory bodies.
The company emphasised its adherence to applicable laws, regulations, and the requirements of its “Articles of Association.”
This strategic foreign investment marks an essential step for Ninestar Corporation as it aims to fortify its global presence and optimise its financial position in the international market.
Note: This story was translated from Chinese.
Categories : World Focus
