EQS-News / 10/10/2019 / 12:41 UTC+8 On 3 October 2019, Sun Cheong Creative Development Holdings Limited (1781.HK) announced that Top Leader, a wholly owned subsidiary of the Company, and Mr. Tse entered into the Business Agreement pursuant to which Top Leader and Mr. Tse agreed to collaborate in trading of cars and provision of related services by establishing Champion Motor, an indirect non wholly owned subsidiary of the Company which is owned as to 60% by Top Leader and 40% by Mr. Tse. Pursuant to the Business Agreement, Top Leader and Mr. Tse will make a total initial contribution of HK$10 million to Champion Motor in proportional to their shareholding interest in Champion Motor, i.e. HK$6 million by Top Leader and HK$4 million by Mr. Tse, on or before 31 October 2019. Pursuant to the Business Agreement, Top Leader and Mr. Tse will make a total initial contribution of HK$10 million to Champion Motor in proportional to their shareholding interest in Champion Motor, i.e. HK$6 million by Top Leader and HK$4 million by Mr. Tse, on or before 31 October 2019. The amount of capital contribution was determined after arm's length negotiations between Top Leader and Mr. Tse on normal commercial terms with reference to the expected initial working capital, funding requirements and future business development of Champion Motor and the proportion of shareholding in Champion Motor by Top Leader and Mr. Tse. The capital contribution by Top Leader in Champion Motor will be funded by the Company through its internal resources and does not constitute part of the proceeds from the initial public offering of the Shares on the Stock Exchange in September 2018. Management of Champion Motor The board of directors of Champion Motor shall comprise three directors with two director being nominated by Top Leader and one director being Mr. Tse. The chairman of the board of directors of Champion Motor shall be a director nominated by Top Leader. REASONS FOR AND BENEFITS OF ENTERING INTO THE BUSINESS AGREEMENT Sun Cheong Creative Development Holdings Limited is principally engaged in design, develop, manufacture and sale of plastic household products with the Group's headquarters in Hong Kong. After the completion of the establishment of Champion Motor, the Group will commence a new business segment of trading of cars and provision of related services. The Board has been reviewing the existing operations and business of the Group and considered beneficial to the Company to explore and develop new business opportunity in an effort to diversify the Group's existing operations to generate extra revenue. The Directors believe that the trading of cars and provision of related services sector is promising with substantial business potential. The Directors note that Mr. Tse possesses more than 15 years of experience in the relevant industry with an extensive client base and are of the view that the experience and client base of Mr. Tse will help the Group to enter into the relevant market. In view of the expected benefit from the cooperation with Mr. Tse, the Group decided to enter into the Business Agreement with Mr. Tse. As such, the Directors are of the view that the terms and conditions of the Business Agreement and the transactions contemplated thereunder are on normal commercial terms, fair and reasonable, and in the interest of the Company and its Shareholders as a whole. Document: http://n.eqs.com/c/fncls.ssp?u=HTVSHBHORX [1] Document title: Sun Cheong Creative Development Holdings Limited Proposes Business Collaboration in Cars Trading and Related Services 10/10/2019 Dissemination of a Financial Press Release, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. Media archive at www.todayir.com 1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=26a5309d4a4e3b45e23a7dc0126ba771&application_id=888141&site_id=vwd&application_name=news
(END) Dow Jones Newswires
October 10, 2019 00:41 ET (04:41 GMT)
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