BEIJING and URUMQI, China, Jan. 24, 2019 /PRNewswire/ -- China Lending Corporation ("China Lending" or the "Company") (Nasdaq: CLDC), a non-bank direct lending corporation servicing micro, small and medium sized enterprises (MSME), currently underserved by commercial banks in China, today announced that, through its wholly-owned subsidiary, China Feng Hui Industrial-Financial Holding Group Co., Limited (HK), it has acquired a 1% equity interest in Zhejiang Lixin Enterprise Management Holding Co., Ltd. ("Lixin"), a financial service company providing financial leasing, factoring, funding, financing guarantee and supply chain management solutions and related advisory services for individuals and MSMEs in the Yangtze River Delta Region. The transaction has been approved by related government agencies.
Additionally, China Lending announced that its business factoring services business, which the Company launched in late November through its recently incorporated subsidiary, Zhiyuan Factoring (Guangzhou) Co., Ltd., has secured multiple business factoring contracts in Shanghai and Hangzhou with contract value of over RMB 5 million, involving gross transaction amount of over RMB 435 million, since its launch.
"The Lixin investment follows previously announced strategic partnership between China Lending and Lixin and marks another important step toward broader collaboration and cooperation between the two parties. Over the past three months, China Lending has benefitted tremendously from this partnership with Lixin helping with realigning our resources, upgrading our product portfolio, expanding our geographical outreach and reaching out to new business partners and M&A targets," said Ms. Jingping Li, Chairwoman and Chief Executive Officer of China Lending.
Ms. Li continued, "As China Lending moves through strategic restructuring, thanks to the Lixin partnership, we are very pleased to see that the newly launched business factoring services got off to a good start. This marks the beginning of a new era for China Lending as it evolves from single revenue stream, regional player to a multiple-revenue stream, national player. We look forward to further development of our partnership with Lixin and continuing expansion of our service offerings and geographical outreach in 2019."
Zhejiang Lixin Enterprise Management Holding Co., Ltd. ("Lixin")
Headquartered in Hangzhou, Zhejiang province, Lixin is a financial service company focusing on providing a wide range of financing solutions and related peripheral services to individuals and MSMEs, including financial leasing, factoring, private funding, financing guarantee and supply chain management, in the Yangtze River Delta Region. Lixin and its subsidiaries were established in January 2013 with registered capital of RMB 101 million (approximately $14 million).
About China Lending Corporation
Founded in 2009, China Lending is a non-bank direct lending corporation and provides services to micro, small and medium sized enterprises, farmers, and individuals, who are currently underserved by commercial banks in China. Headquartered in Urumqi, the capital of Xinjiang Autonomous Region, with a registered capital of $94.7 million (RMB 600 million) as of June 30, 2018 China Lending is one of the largest direct lending companies in the region in terms of registered capital. For more information, please visit: www.chinalending.com.
This press release may include forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that China Lending expects or anticipates will or may occur in the future are forward-looking statements and are identified with, but not limited to, words such as "may," "believe" and "expect." These statements are based on certain assumptions and analyses made by China Lending in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. Actual results may differ materially from those expressed herein due to many factors such as, but not limited to, (1) the ability to obtain or maintain the listing of the Company's securities on the NASDAQ Capital Market; (2) the ability to recognize the anticipated benefits of our business combination; (3) the outcome of any legal proceedings that may be instituted against the Company; (4) changes in applicable laws or regulations; (5) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; and (6) other risks and uncertainties indicated from time to time in the proxy statement filed by the Company in connection with the business combination, including those under "Risk Factors" therein, and other factors identified in the Company's prior and future filings with the SEC, available at www.sec.gov.
These forward-looking statements are based on information available as of the date of this press release and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date and the Company undertakes no obligation to update any forward-looking statements contained herein to reflect events or circumstances which arise after the date of this press release, whether as a result of new information, future events or otherwise, except as may be required under applicable securities law.
For investors and media inquiries please contact:
At the Company:
Tony Tian, CFA
Weitian Group LLC
SOURCE China Lending Corporation