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DFH Signed Strategic Cooperation Agreement with CCRE Investment Set Up a Joint Venture to Provide Commercial Factoring Services in the PRC

Addtime:2016-12-06   Author:Investor Relations

(Hong Kong, 6 December2016) – Differ Group Holding CompanyLimited (“DFH” or the “Group”) (stock code: 6878.HK), a leading provider ofshort- to medium-term financing and financing-related solutions in the PRC,today announced that, a wholly-owned subsidiary of the Group, Differ Group(China) Company Limited (“Differ China”) has entered into an investmentcooperation agreement with Xiamen CCRE Investment Company Limited (“CCREInvestment”)[1],Xiamen CEFC Petroleum Holdings Limited (“CEFC Petroleum”)[2] and Xiamen SoftwareIndustry Investment Development Company Limited (“Xiamen Software Investment”)[3] in relation to theformation of the joint venture (“JV”) to provide commercial factoring relatedservices[4] in the PRC. The servicesinclude but not limited to, sales and purchase of account receivables, accountreceivables management and collection, credit analysis, commercial factoring andrelated consultancy services. The registered capital of the JV is RMB 100 millionand Differ China will hold 20% of the entire issued capital of the JV upon theformation.


The JV was formed pursuantto the Strategic Cooperation Agreement entered into between Differ China andCCRE Investment on 27 October 2016. The agreement proposed the formation of theabovementioned JV in Shenzhen to provide commercial factoring services acrossthe country; to leverage on their respective expertise and customer base toprovide small loan services, guarantee services and other financial services;and cooperation in trading of financial assets, asset securitisation, financialtechnology, equity investment and public-private partnership.

Mr.Hong Mingxian, Chairman and Executive Director of DFH, said, “Wefeel very honoured to have established this strategic cooperationwith CCRE Investment. Driven by favourable state policies and the market with over RMB20 trillion accountreceivables, commercial factoring has huge potential for development. Webelieve that, upon the formation of JV with CCRE Investment, CEFC Petroleum andXiamen Software Investment, the close ties forged are expected to broaden thecustomer base, bolster the competitiveness and also expand the geographicalcoverage of our business. Given the effective consolidation of resources ofdifferent parties, the JV will better generate synergies with the Group’sexisting financial services segment and therefore will enable the Group toprovide one-stop, convenient and diverse financial offerings to customers. Wewill continue to actively capture the opportunities presented by the currentrapidly changing economic environment in the PRC, further expand our marketshare and reinforce our leading position, so as to maintain sustainable growthmomentum and maximize the value for shareholders.”

[1] CCRE Investment is a state-owned enterpriseestablished in the PRC and is directly managed by the City of Xiamen. It isprincipally engaged in manufacturing of commercial transportation equipment,commercial transportation equipment services, real estate and investment.

[2] CEFC Petroleum is a trading company engaged inthe energy industry, it is established in the PRC with limited liability and asubsidiary of China CEFC Energy Company Limited (中國華信能源有限公司). China CEFC Energy Company Limited is acompany established in the PRC with core businesses of energy and financialservices.

[3] Xiamen Software Investment is a state-ownedenterprise in the PRC with limited liability. It is principally engaged in theoperational management and investment of Xiamen Software Park.

[4] Commercial factoring is a new integratedfinancial service comprising trade financing, account receivables managementand guarantee for credit risks. Customers sell their account receivables beforematurity in the form of credit to a third party at a discount, subject to acertain terms and conditions. The third party can obtain financing to increasetheir liquidity or adjust its financial position as a result.