Baofeng Group, 8/08/17
Beijing-based developer of virtual reality headsets, TV sets, and media player software Baofeng Group (300431.SZ) recently announced that the company will set up an online microlending joint venture.
Baofeng Group's wholly-owned subsidiary Xinying Technology has signed an investment memorandum with Baofeng Rongxin Technology and Yinhui Xinde Investment Management, according to which they will jointly set up the new company called "Ningxia Baofeng Internet Microloan" ("Ningxia Baofeng").
Ningxia Baofeng will be established with RMB 3 bln in registered capital. Xinying and Baofeng Rongxin will each invest RMB 1.2 bln for 40% stakes, and Yinhui Xinde will invest RMB 600 mln for a 20% stake.
The parties' announcement said that the transaction will help the partners make use of their resources and advantages to set up a small loan business, enhance the Baofeng brand, and improve the group's overall capabilities.
Editor's Note: Baofeng Rongxin Technology is an enterprise directly owned by Feng Xin, the controlling shareholder and actual controlling party of Baofeng Group. Feng serves as Baofeng Rongxin's board chairman, and Baofeng Rongxin and Baofeng Group are related parties.