Chinasoft International Ltd (CFTLF)

[StockpickerCAPC]

China Software International (00354.HK): Beijing Chinasoft International intends to transfer 50.83% of Shenzhen Kaihong’s equity, Shenzhen Kaihong receives a total capital injection of 200 million yuan.

source
https://cj.sina.com.cn/articles/view/5115326071/130e5ae7702001jqt4

Gelonghui APP at 22:12 on December 23, 2021

China Software International (00354.HK) announced that on December 23, 2021, Beijing Chinasoft International and Hongju Innovation entered into an equity transfer agreement. According to this, Beijing Chinasoft International has agreed to transfer and Hongju Chuangxin has agreed to acquire and transfer equity interest (equivalent to approximately 50.83% equity interest of Shenzhen Kaihong) at a consideration of RMB 76.25 million. Among them, Hongju Innovation is Shenzhen Kaihong’s employee stock ownership plan, and its equity plan will be all allocated to Shenzhen Kaihong’s employees within two years.

On the same day, Beijing Chinasoft International, Yixin Technology, Hubble, CCB Chinasoft International, Hongju Innovation and Shenzhen Kaihong entered into a Shenzhen Kaihong Capital Injection Agreement. According to this, Hubble, CCB Chinasoft International and Hongju Innovation have agreed to deal with Shenzhen Kaihong. Kaihong injected a total of RMB 200 million in equity capital.

After the completion of the equity transfer agreement and the Shenzhen Kaihong Capital Injection Agreement, Shenzhen Kaihong will no longer be a subsidiary of the group, but the group will, through its 99.90% partnership interest in CCB Chinasoft International, own approximately 19.50% indirect actual equity interest.

Shenzhen Kaihong is headquartered in Shenzhen. Its mission is to become the flagship developer of the core operating system based on OpenHarmony, and to do business based on the open source Hongmeng operating system release.

The company has been working with various parties on the development of the OpenHarmony operating system release and has launched various strategic cooperations on the application of the OpenHarmony operating system release to thousands of industries. OpenHarmony is an open source project incubated and operated by the Open Atom Foundation. The goal is to face the era of full scenarios, full connectivity, and full intelligence. Based on open source, it builds a framework and platform for smart terminal device operating systems to promote The prosperity and development of the Internet of Everything industry.

These transactions will be able to
- (i) build a high-tech product business with root technical capabilities centered on a domestically-made smart IoT operating system;
- (ii) use product business to extend and build an ecological enablement centered on a domestically-made smart IoT operating system Business, and lead to build a more solid cornerstone business, so as to build ABG's multi-level, full stack, interactive development and all-round growth business structure covering products, ecological enablement, cornerstones, and form new business growth points;
- (iii) Multi-level The full-stack business structure will drive the strategic depth of building a talent development channel, realize the sound development and flow of talents in the cornerstone business, ecological enabling business, and product business, enhance the advantage of talent attraction, strengthen the company's talent capital, and effectively help the multi-level full-stack Interactive development and overall growth of the business; and
-(iv) Using technology to guide the cornerstone business to the integration of software and hardware, 2B to 2C, a larger-scale market development, improve delivery capabilities, better serve strategic customers, and achieve Further high-quality and large-scale growth of the cornerstone business.