--Significant milestone in ongoing business transformation--
--Partners will offer services for institutionally-funded lending to small businesses--
SHANGHAI, Oct. 8, 2019 /PRNewswire/ -- China Rapid Finance Limited (NYSE: XRF) ("XRF" or the "Company") today announced the signing of Letters of Intent (the "LOIs") with Chengdu Qiye Technology Co., Ltd., ("Qiye") outlining how the Companies will partner to offer services for institutionally-funded lending to small and medium sized businesses ("SMB"). This new partnership marks another important milestone in the Company's business transformation since withdrawing from the P2P lending business.
Under the planned partnership, XRF will provide technology development and risk management services to Qiye through an operating subsidiary under its Cayman Company. The subsidiary is intended to become the Company's fintech and service revenue driver in the SMB "Lend Aid" business. No retail funding will be used for this new business. The new business will combine XRF's established and sophisticated technology for lending and risk management technology with Qiye's marketing and customer channel expertise in order to help institutional lenders more effectively reach potential SMB borrowers. XRF believes that this partnership will further drive its transformation into a rapidly growing platform focused on institutional lending to SMBs.
Dr. Po Wang, Co-CEO of China Rapid Finance, commented, "The Chinese government is actively promoting lending to SMBs, which makes this an attractive market opportunity for us. The foundation of our partnership is the current clientele of Qiye, which has already established a fast-growing SMB loan-aid business with institutional funding. China Rapid Finance strengthens the product offering via its pioneering financial services and risk management technology."
Dr. Zane Wang, Chairman and Co-CEO of XRF, stated: "We believe this endeavor can create meaningful value for our shareholders as it drives expected revenue and profit growth. We are fully committed to transforming XRF away from P2P lending and toward broader fintech services in an orderly and responsible manner."
About China Rapid Finance Limited
China Rapid Finance (NYSE: XRF) is a leading fintech company that combines an award-winning microcredit fintech service with one of China's largest online consumer finance marketplaces. The Company utilizes its proprietary, mobile-first technology to select consumers for its platform. China Rapid Finance was founded by Dr. Zane Wang, who has decades of consumer credit industry experience in the U.S. and China. For more information, please visit http://ir.crfchina.com.
About Chengdu Qiye Technology Co, Ltd
Chengdu Qiye is a leading "loan-aid" company helping institutions lend to small and medium businesses. Via its propriety platform for business intelligence, it helps lenders to provide pre-approved credit lines to targeted small businesses throughout China. Qiye has a veteran sales and marketing team that has successfully built a fast growing operation. Qiye has secured lending capital credit lines from major institutions. The company is an award-winning startup in the Chengdu High-Tech Park funded by investment from many well-known institutions.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "may," "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's ability to satisfy the requirements of PRC regulatory authorities regarding the repayment of loans made by lenders on its platform; the success of the cooperation arrangement with EOT; the Company's ability to file its Annual Report in a timely manner or regain compliance with NYSE continued listing standards; the potential need to make adjustments to prior period financial statements of the Company; unexpected difficulties in the Company's pursuit of its goals and strategies; unexpected developments, including slow growth, in the consumer lending market; reduced demand for, and market acceptance of, the Company's products and services; difficulties keeping and strengthening relationships with borrowers or investors; difficulties of expanding data and channel partnerships, potentially costly servicing activities; competition in the consumer lending market; PRC governmental regulations and policies; and general economic and business conditions in the regions where the Company provides products and services. Further information regarding these and other risks is included in the Company's reports filed with, or furnished to, the Securities and Exchange Commission. All information provided in this announcement and in the attachments is as of the date of this announcement, and the Company undertakes no duty to update such information except as required under applicable law.
SOURCE China Rapid Finance