China Lending Corp. to dispose of Feng Hui
China Lending announced that its subsidiary, China Industrial Financial Holding Group Co., Ltd. has entered into a framework agreement with Zhejiang Zhongfeng Investment Management Co., Ltd., pursuant to which Zhongfeng will either acquire a 100% equity interest in Urumqi Fenghui Direct Lending Co., Ltd., a variable interest entity of the company primarily engaged in the microloan business, or obtain control over and become the primary beneficiary of Feng Hui through contractual arrangements for a cash consideration of no less than RMB15,000,000. Feng Hui primarily provides loan facilitation services to micro, small and medium sized enterprises in the Xinjiang Uygur Autonomous Region. Jingping Li, co-founder and CEO of China Lending, commented, "The disposal of Feng Hui allows us to improve our liability position and convert our accounts receivables into cash. The disposal will further improve our liquidity while eliminating the majority of our debt and financing costs so that we can commit our resources to the development of other financing business lines with more promising prospects such as supply chain financing, asset management, and insurance facilitation. In 2019, our investments in new business lines through two subsidiaries have already achieved meaningful results. We are currently in a step-by-step process of developing financing services beyond direct lending in China's economically developed regions. The disposal of Feng Hui is a decisive step towards reinvigorating our growth."