Author: Charles Chua

OKEx’s COO Resigns to Launch Blockchain Consultancy Institute, BitWork

The entrepreneur is committed to helping projects connect to markets and drive mass crypto adoption

Andy Cheung has resigned as the COO of OKEx, a world-leading cryptocurrency exchange, to start a new blockchain consultancy institute, BitWork. With a team of experienced blockchain experts, BitWork offers exchange partnerships, advisory, marketing management, branding and public relations, fundraising, and event management services to cryptocurrency and blockchain projects.

“My goal is to drive mass cryptocurrency adoption. But my contribution can be very limited in a cryptocurrency exchange. I decided, and we agreed amicably, that I can better achieve my goals with a new venture. Still, it’s been an absolute pleasure to have served OKEx.” said Andy Cheung.

“The question I was always asked in OKEx was: How can my project get listed on your exchange? Like CZ (CEO of Binance) and a few more leaders in the industry, we always tell the teams that project quality is the key.”

“But how to improve the quality of a project? What do the markets need? BitWork will help answer and provide solutions to these questions. By helping more projects to get exposure and connecting them to different markets, we strive to facilitate mass crypto adoption.”

Led by Andy Cheung, BitWork launched and operates in Hong Kong. The startup is formed by a team of experienced blockchain experts from different cryptocurrency exchanges. With a solid industry background, it provides bespoke consulting services to help cryptocurrency projects build and market their products – from exchange partnerships, advisory, marketing management, branding and public relations, fundraising, to event management services.

Mr Cheung had been serving OKEx as COO since its launching. He oversaw the entire operations, marketing, and public relations of OKEx. He was also named as top crypto influencer by media sites such as CoinTelegraph, CryptoSlate, Bitcoin Insider, and Block Journal.

Prior to OKEx, the seasoned entrepreneur started many businesses and forayed into many sectors. He had served as the CEO and a variety of important roles in Groupon Hong Kong, iClick Interactive, and Alibaba.

About BitWork
BitWork is a blockchain community based company that assists blockchain companies to realize their true potential. It also provides individuals opportunities to access blockchain technology and helps different parties incubate ideas in building a mutually beneficial ecosystem.

Contact
Public Relations Representative
Ms Becky Lo
Tel: +852 91744420
E-mail: pr@bitwork.asia / becky@bitwork.asia

EuroEyes (1846.HK) Initiates strategic cooperation with East Lake Digital Town, Officially Enters into Fuzhou Market

EuroEyes International Eye Clinic Limited (“EuroEyes” or the “Company”, stock code:1846) today held a signing ceremony of the strategic cooperation with Fuzhou East Lake Digital Town, marking its official presence in the China’s Fuzhou market. The guests at the signing ceremony included Chen Guoping, the CPPCC Standing Committee Member of Fujian Province and the Mayor of East Lake Digital Town; Dr. Jorn Slot Jorgensen, the Founder, Chairman of the Board and CEO of EuroEyes; Jannik Jorgensen, Vice President (Denmark) and Executive Director; Jenny Wang Yan, Vice President (China); Chen Guohe, the Director of Fujian New East Lake Investment Co., Ltd; and Zhang Yuanhua, the Executive Vice President of Fujian New East Lake Investment Co., Ltd.

EuroEyes Fuzhou Clinic is the Company’s eighth clinic in China after Shanghai, Beijing, Guangzhou, Shenzhen, Hangzhou, and Chongqing. EuroEyes Fuzhou Clinic is located on the third floor of FFC Fuzhou Future Center in East Lake Digital Town of Binhai New City, with an area of 800 square meters and an investment of over RMB10 million. The clinic is expected to commence its operation in October 2020, which is also committed to providing the high- quality German ophthalmology services for Binhai New City and the entire Fuzhou.

According to preliminary survey by the Fuzhou Statistics Bureau, Fuzhou achieved gross domestic product (GDP) of RMB352.853 billion in the first half of 2019, representing an increase of 8.5% year-over-year. Fuzhou is the second largest prefecture-level city in Fujian Province with GDP growth rate exceeding 8% for 8 consecutive quarters. In recent years, Fuzhou has even deliberately created a “Digital Fuzhou” and made every effort to develop new economy industries. The East Lake Digital Town, where EuroEyes opens its Fuzhou Clinic, is the new economic and industrial base of the central business district that the city has been deliberately developing. As of now, the East Lake Digital Town has attracted nearly 20,000 well-known Chinese and foreign digital enterprises in the high-tech field, including Microsoft, Starbucks, Alibaba, Tencent, and Huawei to set up their footprints in the area, forming a high-end business circle. It is expected that when the town is fully constructed in 2021, it will attract more than 1,000 digital enterprises to settle in and create over RMB100 billion of asset value. In the meantime, the presence of EuroEyes in the East Lake Digital Town also helps introducing the authentic German refractive ophthalmology technology into Fujian and propelling economic development in the region by utilizing the cutting-edge international ophthalmology technology and services. EuroEyes is a giant in the ophthalmic medical industry, with a strong team of professional ophthalmologists, advanced diagnostic equipment, and international high-quality ophthalmic diagnostic services. With the opening of EuroEyes Fuzhou Clinic in the town, it will benefit patients with various refractive diseases in Fuzhou Binhai New City and even the whole Fuzhou to enjoy high-quality ophthalmology services and to resume their clear vision for higher quality of life.

EuroEyes was established in 1993 and is one of Europe’s leading brands in the vision correction industry as well as a leading refractive ophthalmology brand in Germany and Europe, headquartered in Hamburg, Germany. EuroEyes is operated by famous German doctor Dr. Jorn Slot Jorgensen, and was awarded with many Ophthalmology prizes. EuroEyes currently operates 27 eye clinics and consultation centers in Germany, Denmark and China. According to the report of BOCI, EuroEyes was awarded with World Champion – Most Trifocal Lens Implants, European Champion – Most ICL Implants and German Champion – Most ReLEx SMILE Procedures in 2018. EuroEyes is a market leader in advanced lens exchange surgery and refractive surgery (excluding PRK / LASEK) in Germany and Denmark. In 2018, EuroEyes’ market share in Germany and Denmark was 13.2% and 10.8% respectively.

In recent years, the morbidity of various eye diseases in China has increased year by year, and the ophthalmic market has grown rapidly. Statistic data shows that from 2013 to 2017, the size of China’s ophthalmology market increased from RMB46.77 billion to RMB86.7 billion, and the CAGR during the period reached 17%. It is expected that the size of the ophthalmology market will expand at a CAGR of 13% -15% in the next five years. Since entering China in 2013, EuroEyes aims at providing advanced German technology and 100% German services to patients with myopia, hyperopia, presbyopia and cataracts, allowing them to resume a clear vision. Up to now, EuroEyes has successfully completed over 400,000 ophthalmological surgeries and help patients retaining clear vision in Europe and China without glasses. Among such patents, there were many entrepreneurs, celebrities and high net-worth individuals. According to Financial Report of EuroEyes, the revenue of China region in 2018 was approximately RMB94 million, accounting for 28.2% of the overall revenue of the Company. From 2016 to 2018, the CAGR of revenue and gross profit in China region was 85.1% and 633.7% respectively.

Dr. Jorn Slot Jorgensen, the Founder, Chairman of the board and CEO of EuroEyes said “EuroEyes is very honored to be in East Lake Digital Town, bringing German ophthalmology technology and quality services to the people in the town and nearby districts. The East Lake Digital Town is the innovative center of China’s digital economy while EuroEyes has also been committed to innovation in the field of refractive technology. Through the cooperation with the management of the town, I sincerely look forward to improving medical technology and quality in the region, as well as create the momentum to the future development of the town.”.

EuroEyes Fuzhou Clinic is another strategic development following EuroEyes’ successful listing on the main board of the Hong Kong Stock Exchange, showing its strategic determination to enter the China market and its high recognition of the sustainable development of the Fuzhou market. With the signing ceremony of Fuzhou Clinic successfully held, EuroEyes will utilize its unique advantages of “German doctors and German quality” to provide patients in Fuzhou and the surrounding cities with high-quality ophthalmology services and strive to improve the eye health-care level and quality of life of residents in China.

Powerlong Commercial Management Holdings Limited: Announcement of Offer Price and Allotment Results

Powerlong Commercial Management Holdings Limited (“Powerlong Commercial” or the “Company”) today announces the allotment results of the global offering (the “Global Offering”) of its offer shares (the “Offer Shares”). The offer price (the “Offer Price”) has been determined at HK$9.50 per Offer Share (excluding brokerage of 1.0%, the SFC transaction levy of 0.0027% and the Stock Exchange trading fee of 0.005%). Based on the Offer Price of HK$9.50 per Offer Share, the net proceeds from the Global Offering to be received by the Company after deducting underwriting fees and commission, and other estimated expenses payable by the Company in relation to the Global Offering and assuming the option granted by the Company to the Sole Global Coordinator to require the Company to issue and allot up to 22,500,000 additional Shares (representing 15% of the Offer Shares initially being offered under the Global Offering) at the Offer Price to cover over-allocations in the International Offering (as hereinafter defined) (the “Over-allotment Option”) is not exercised, are estimated to be approximately HK$1,336.0 million.

The Offer Shares initially offered for subscription by the public in Hong Kong (the “Hong Kong Public Offering”) have been very significantly over-subscribed. A total of 43,358 valid applications have been received pursuant to the Hong Kong Public Offering on WHITE and YELLOW Application Forms and through giving electronic application instructions to HKSCC via CCASS and through the White Form eIPO Service Provider under the White Form eIPO service (www.eipo.com.hk) for a total of 798,597,500 Hong Kong Offer Shares, representing approximately 53.24 times of the total number of 15,000,000 Hong Kong Offer Shares initially available for subscription under the Hong Kong Public Offering.

As the over-subscription in the Hong Kong Public Offering is more than 50 times of the number of the Offer Shares initially available for subscription under the Hong Kong Public Offering and the Offer Shares initially offered for subscription outside the United States in offshore transactions in reliance on Regulation S (the “International Offering”) were over-subscribed, the reallocation procedure as described in the section headed “Structure of the Global Offering – The Hong Kong Public Offering – Reallocation and Clawback” in the Prospectus has been applied. A total of 45,000,000 Shares have been reallocated from the International Offering to the Hong Kong Public Offering, increasing the total number of Offer Shares available under the Hong Kong Public Offering to 60,000,000 Offer Shares, representing 40% of the total number of Offer Shares initially available under the Global Offering (before any exercise of the Over-allotment Option).

The Offer Shares initially offered under the International Offering have been moderately over-subscribed and an over-allocation of 22,500,000 Shares was made in the International Offering. A total of 880,280,865 International Offer Shares have been subscribed, representing approximately 6.52 times of the total number of 135,000,000 International Offer Shares initially available for subscription under the International Offering.The final number of Offer Shares under the International Offering is 90,000,000 Shares (including 14,369,156 Reserved Shares offered under the Preferential Offering), representing 60% of the total number of the Offer Shares initially available under the Global Offering (before exercise of the Over-allotment Option). A total number of 45 placees have been allotted three board lots of Shares or less, representing approximately 28.302% of total number of placees under the International Offering.

A total of 28 valid applications pursuant to the Preferential Offering from Qualifying Powerlong Shareholders on BLUE Application Forms for a total of 27,769,957 Reserved Shares have been received, representing approximately 1.93 times of the total number of 14,369,156 Reserved Shares initially available under the Preferential Offering. 14,369,156 Shares were allocated to Qualifying Powerlong Shareholders.

In connection with the Global Offering, the Company has granted the Over-allotment Option to the international underwriters exercisable by the Sole Global Coordinator on behalf of the international underwriters at any time from the Listing Date until Saturday, 18 January 2020, being the 30th day after the last date for lodging applications under the Hong Kong Public Offering, to require the Company to allot and issue up to an aggregate of 22,500,000 Shares, representing in aggregate 15% of the Shares initially being offered under the Global Offering, at the Offer Price to cover over-allocations in the International Offering, if any.

Based on the Offer Price of HK$9.50 per Offer Share and pursuant to the cornerstone investment agreements with the Cornerstone Investors as disclosed in the section headed “Cornerstone Investors” in the Prospectus, the number of Offer Shares subscribed for by the Cornerstone Investors has now been determined. He Sheng Overseas Holdings Limited has subscribed for 8,196,500 Offer Shares, Liaoning Yonghui Supermarket Co. Ltd. has subscribed for 8,196,500 Offer Shares, Mr. Hui Lin Chit has subscribed for 8,196,500 Offer Shares and Orchid China Master Fund has subscribed for 4,918,000 Offer Shares. The Cornerstone Investors have in aggregate subscribed for 29,507,500 Offer Shares, representing approximately 19.67% of the total number of Offer Shares initially available under the Global Offering (assuming the Over-allotment Option is not exercised) and approximately 4.92% of the total number of issued Shares immediately following the completion of the Global Offering (assuming the Over-allotment Option is not exercised).

ABCI Capital Limited is the Sole Sponsor and the Sole Global Coordinator; ABCI Capital Limited, China Industrial Securities International Capital Limited, Guotai Junan Securities (Hong Kong) Limited, CRIC Securities Company Limited, Zhongtai International Securities Limited and CMB International Capital Limited are the Joint Bookrunners.

About Powerlong Commercial Management Holdings Limited
Powerlong Commercial Management Holdings Limited (the “Company”, together with its subsidiaries, the “Group”) is a leading commercial operational service provider in China, as measured by GFA under management as of December 31, 2018, according to Frost & Sullivan. As of December 31, 2018, the Group had 45 retail commercial properties under management, with an aggregate GFA under management of approximately 4.5 million sq.m., excluding car parks. The Group was ranked fourth among all commercial operational service providers in China in terms of GFA under management, excluding car parks, as of December 31, 2018, representing a market share of 0.8%. The Group has grown to be a leader in managing and operating retail commercial properties since its establishment in 1993. The Group is one of the few commercial operational service providers in China possessing the expertise and capability of managing a diversified portfolio of retail commercial properties in terms of target consumer, property location and size and property type. As of June 30, 2019, the Group had 45 retail commercial properties under management with an aggregate GFA under management of approximately 6.4 million sq.m., and was contracted to provide commercial operational services for a total of 59 retail commercial properties with an aggregate contracted GFA of approximately 7.5 million sq.m. The Group also provides residential property management services for residential properties, office buildings and serviced apartments. As of June 30, 2019, the Group had 44 properties under management under its residential property management service segment with an aggregate GFA under management of approximately 10.6 million sq.m., and was contracted to manage 69 properties with an aggregate contracted GFA of approximately 17.1 million sq.m.

Xiao-i Sees AI-powered Enterprise Service as New Growth Driver

Mr. Max Yuan, the Founder, Chairman and CEO of Xiao-i (Right) and Mr. Kainan Dong, the GM of Caocao Mobility sing the strategic partnership agreement; both parties see the partnership with contribute to rooting AI capabilities in every business workflow of Caocao Mobility.

Shanghai Xiao-i Robot Technology Co. Ltd, a leading developer of artificial intelligence (AI) and industry application platforms, is delighted to announce its breakthrough in providing cognitive intelligence-powered enterprise service by entering a strategic partnership with CaoCao Mobility. CaoCao is the first ride-hailing service provider with its entire fleet consisting of electric cars backed by China’s automaker Geely. Under the partnership, both parties will work together in optimizing the “AI+ Mobility Brain”, building a next-generation ride-hailing experience.

With the convergence of 5G and artificial intelligence, AI machines will lead the way the third wave of technological transformation in various industries. Xiao-i has remained the leader in enabling traditional enterprises to upgrade conventional business processes and practices through its proprietary artificial intelligence technology. Through this partnership, Xiao-i will leverage its Natural Language Understanding (NLU), cognitive intelligence, and big data analytics capabilities to enable CaoCao to implement more AI-driven applications. This partnership allows more opportunities in AI initiatives/applications by implementing a unified platform to coordinate operations and enhance business process workflow.

The central role of Xiao-i’s “AI+ Mobility Brain” allows CaoCao to upgrade across ride-hailing services by improving ride service quality, streamlining operation management, protecting privacy and security, and enabling precision marketing. Xiao-i is poised to assist CaoCao in creating a new industry standard, constructing a more automated, efficient, and intelligent experience for drivers, operators, and more importantly, to deliver a new benchmark throughout the ride-hailing industry.

As the industry leader promoting China’s digital transformation, Xiao-i plays an active role in cooperating with industry partners to explore new potentials of AI implementation. Leveraging on its years of experience in driving data transformation and strategic enhancement for enterprise applications, Xiao-i has gradually established itself as the leading AI+ Enterprise Service Platform in China. Xiao-i’s proprietary platform allows operator customization on AI initiatives and applications. The construction of this platform sets the focus on unleashing the potential of refining human-machine collaboration, managing data intelligence, reinventing business workflow, and nurturing AI talents. Xiao-i’s service platform commits to supporting the smart upgrade and agile innovation of traditional business by providing full-stack value-added service.

According to China’s National Internet Development Report 2019, the size of China’s digital economy grew to 31.3 trillion RMB in 2018. China’s digital economy accounts for 34.8% of the national GDP. The total market output from the disruption of AI and data technologies of the current economy is expected to surpass 40 trillion RMB by 2020. Looking ahead, automation at scale remains insufficient for enterprise sustainability, staying competitive in the digital age leaves a large margin to fulfill. Critical differentiators for corporate entering the next wave of industry shift lies in AI integration. Applications in the work process, dataset, and staff operations need to be smoothly integrated with AI capabilities. Unlocking new digital value with strengthening human-machine collaboration would be the key to success.

Mr. Max Yuan, the Founder, Chairman, and CEO of Xiao-i, said, “The strategic deployment of AI+ Enterprise Service Platform would become a new engine in promoting AI adoption and implementation in scale. We see the new platform as an asset in facilitating technology transfer and industry cooperation with huge potential in promoting the application of cutting-edge cognitive intelligence technologies to new business scenarios, hence empowering the smart upgrade of the industry. By sustaining our first-mover advantage in developing and applying cognitive intelligence, we expect to achieve monetization of this enterprise service business in short term, grasping the business opportunities from digital economy. Looking ahead to 2020, Xiao-i will continuously pursue to reach our visions by unlocking new digital value with the help of cognitive intelligence, unveiling more business scenarios and teaming with the industry in unleashing new market output.”

About Xiao-i
Shanghai Xiaoi Robot Technology Co. Ltd (Xiao-i) is a leading AI company that specializes in multilingual natural language processing, deep semantic interaction, speech recognition, machine learning and other cognitive intelligence technologies. A pioneer in industrial AI applications, Xiao-i was established in Shanghai in 2001 and has developed into a market leader. The company currently serves over 1,000 large enterprises and government organizations and provides its open platform to more than 100,000 small and medium-sized enterprises and developers. Xiao-i has established R&D centers in Shanghai, Guiyang, Nanjing and Hong Kong. The company also launched its Asia-Pacific Headquarters in Hong Kong in 2018 to grow its international presence. Xiao-i’s major investors include Alibaba Group, China Everbright and Haiyin Capital.
Official website: www.xiaoi.com/en/
LinkedIn page: www.linkedin.com/company/xiaoi/

Business Collaboration and Media Enquiries
Ms. Rika Li rika.li@xiaoi.com
Ms. Tracy Law tracy.law@xiaoi.com

Champion REIT Embraces Sustainable Development Earns Top Honours in 2019

Champion Real Estate Investment Trust (“Champion REIT”) (Stock Code: 2778), owner of Three Garden Road and Langham Place, regards sustainability as an integral part of its corporate culture. To assimilate sustainability into business objectives and daily operation, the Trust takes a proactive approach to devising sustainability strategies which keep abreast of the fast-changing world. The Trust triumphed various sustainability-related awards in 2019.

Major awards in 2019:
– The Chamber of Hong Kong Listed Companies – Award for Sustainability Excellence
– The Hong Kong Management Association – Sustainability Grand Award (Top Honour)
– Hong Kong Investor Relations Association – Overall Best IR Company Award (Top Honour)
– Hong Kong Economic Journal – Listed Company Award of Excellence 2019
– The Hong Kong Management Association – Best Annual Reports Award 2019

Sustainability indices:
– “Green Star” and “Grade A on Public Disclosure” under Global Real Estate Sustainability Benchmark
– Constituent of Hang Seng Corporate Sustainability Benchmark Index for the fourth consecutive year

Ms Ada Wong, Chief Executive Officer of Champion REIT, said, “We are very pleased to have won various awards again, recognising our efforts in pursuing sustainable development and enhancing our corporate governance standard. We will continue to heed international market benchmarks in improving our overall business performance. Furthermore, we will actively join hand with our stakeholders in advancing sustainability progress with the goals of achieving multiple wins and creating shared values for our business and stakeholders.”

The Chamber of Hong Kong Listed Companies – Award for Sustainability Excellence
The award aims to foster the highest corporate governance, business ethics and board leadership standards in Hong Kong, and also recognise companies for delivering excellent corporate governance performance and promoting best practices, thereby furthering long-term optimum development of corporate governance culture.

The Hong Kong Management Association – Hong Kong Sustainability Grand Award (Top Honour)
The award recognises enterprises demonstrating due consideration of economic, social and environmental aspects in their pursuit of sustainable development, while also achieving outstanding business results. Champion REIT won four awards at the Hong Kong Sustainability Award (Small-sized Organisation Category) organised by The Hong Kong Management Association, namely the Hong Kong Sustainability Grand Award, Hong Kong Sustainability Award, Special Recognition for Outstanding Sustainability Initiative: Social Dimension and Environmental Dimension.

Hong Kong Investor Relations Association – Overall Best IR Company Award (Top Honour)
The award recognises not only Champion REIT’s continuous efforts in business development and operation, investor relations and its push for progress and breakthroughs, but also its excellence across various business endeavours. The award winners were selected by local and overseas buy-side and sell-side analysts and fund managers voting online.

Hong Kong Economic Journal – Listed Company Award of Excellence 2019
The award is a credible indicator of industries worthy of reference by investors. It honours listed companies demonstrating exceptional performance in the past year. Champion REIT again earned recognition from the capital market for its remarkable performance.

The Hong Kong Management Association – Best Annual Reports Award 2019: Excellence Award for Small Size Entries
The Hong Kong Management Association encourages organisations to provide timely, accurate, comprehensive and clearly presented information in their annual reports to stakeholders. Themed “Champion Our Wellness”, the design of Champion REIT’s 2018 Annual Report echoes the Trust’s vision to go beyond managing its premium office and retail spaces by bringing wellness to the forefront. The Trust creates favourable communities where tenants, customers and employees can achieve work-life balance and fulfilment in life.

Accolades in 2019

May
Hong Kong Investor Relations Association
– Overall Best IR Company Award (the ONLY mid-cap company receiving the honour)
– Best IR Company
– Best IR by Chairman / CEO – Ms Ada Wong
– Best IRO – Ms Amy Luk
– Best Investor Meeting
– Best Digital IR
– Best Investor Presentation Material
– Best Annual Report
– Best IR Team – Ms Ada Wong, Ms Amy Luk, Ms Sophia Wong, Mr Jonathan Chan

Top 100 Hong Kong Listed Companies Research Centre
– Soaring Companies Award

June
Corporate Governance Asia
– Asia’s Best CEO – Ms Ada Wong
– Best Investor Relations Professional – Ms Amy Luk
– Best Investor Relations Company

July
The Hong Kong Institute of Financial Analysts and Professional Commentators Limited
– 2019 Outstanding Listed Companies Award

August
MerComm. Inc
– 2019 International ARC Awards
Cover Design – Gold
Interior Design – Silver

International Annual Report Design Awards
– Cover Design – Gold

November
The Hong Kong Management Association
– Hong Kong Sustainability Grand Award
– Hong Kong Sustainability Award
– Special Recognition for Outstanding Sustainability Initiative: Social Dimension
– Special Recognition for Outstanding Sustainability Initiative: Environmental Dimension
– Best Annual Reports Award 2019: Excellence Award for Small Size Entries

Hong Kong Economic Journal
– Listed Company Award of Excellence 2019 (Main Board – Large Cap)

December
The Chamber of Hong Kong Listed Companies
– Award for Sustainability Excellence

About Champion REIT (Stock Code: 2778)
Champion Real Estate Investment Trust is a trust formed to own and invest in income producing office and retail properties. The Trust focuses on Grade-A commercial properties in prime locations. It currently offers investors direct exposure to 2.93 million sq. ft. of prime office and retail properties by way of two landmark properties, Three Garden Road and Langham Place, one on each side of the Victoria Harbour.
Website: www.championreit.com

For press enquiries
Strategic Financial Relations Limited
Vicky Lee Tel: 2864 4834 Email: vicky.lee@sprg.com.hk
Christina Cheuk Tel: 2114 4979 Email: christina.cheuk@sprg.com.hk
Corinne Ho Tel: 2114 4911 Email: corinne.ho@sprg.com.hk
Website: www.sprg.com.hk

In China, an Unprecedented Economic Transformation

Lei Zhang’ 02 is investing in Chinese companies during an extraordinary moment in history, he told students at Yale SOM. The country, he said, has been undergoing an economic transformation unlike any other on the planet. The United States, he noted, evolved sequentially through an Industrial Revolution, urbanization, and an information age over nearly 200 years. China is experiencing all three simultaneously.

“China has an unprecedented triple combination. It’s all happening at the same time and to a scale of 1.3 billion people,” Zhang said. “Think about using the United States as a parallel example, it’s like having Carnegie, Rockefeller, J. P. Morgan, and Mark Zuckerberg sitting together in the same room, in the same decade, building up all the wealth and value at the same time.”

Zhang, the president and chief investment officer of Hillhouse Capital Management, spoke as part of a panel discussion with Guolu Qiu, CEO of Gaoyi Asset Management. Stephen Roach, senior fellow at Yale University’s Jackson Institute of Global Affairs, moderated the conversation, part of the Colloquium in Asset Management. The three explored the environment for investors in China, the trends shaping investments now, and the outlook for asset managers.

Qiu said that China has developed a generation of home-grown entrepreneurs in a decade of economic growth. “The view that Chinese don’t innovate is something that needs to change,” he said. “That’s something that’s already changing in the mobile internet area. You get to a certain point where when you have a number of small changes, they accumulate, and they lead to something new.”

Both investors disagreed with a commonly held view of Chinese companies: that they excel at reproducing existing products more cheaply. Today, Zhang said, China produces real innovation. He has invested in WeChat, a messaging platform with more than 500 million users in China. The company has now expanded beyond the mainland to Indonesia and includes mobile person-to-person payment features. Chinese digital products, he said, are finding new ways to flourish abroad.

“Today, innovation is being exported from China,” Zhang said. “In emerging markets, people are trying all kinds of ways to get connected. There are so many ways that people are using commerce through social products. China has become a magnet for innovation.”

By Yale School of Management

China Re HK Commences Business Operation, Opening a New Chapter for Global Presence of China Re Group

Following the successful acquisition of Chaucer in late 2018, good news came in again for China Re Group at the end of this year as China Reinsurance (Hong Kong) Company Limited (China Re HK) formally obtained the licence from Hong Kong Insurance Authority on 16 December 2019. A business launch and strategic cooperation signing ceremony was held on 19 December 2019. Yuan Linjiang, Chairman of China Re Group, He Chunlei, President of China Re Group, together with senior leadership of over 20 insurance companies and financial institutions from Hong Kong and Mainland China attended the ceremony to witness this great moment for the global development of China Re Group and the commencement of business operation of China Re HK.

China Re HK is the first wholly-owned reinsurance subsidiary of China Re Group established in Hong Kong in response to the Belt and Road Initiative (BRI) and the development of Guangdong-Hong Kong-Macau Greater Bay Area. Under the wise leadership of higher authorities and the firm guidance from China Re Group’s “going global” strategy, China Re HK has become the first insurance institution approved to be incorporated in Hong Kong by domestic insurers, since the establishment of China Banking and Insurance Regulatory Commission (CBIRC). China Re Group resumed the application process for China Re HK at the beginning of this year, completed all domestic and overseas approval procedures and preparatory work in just eight months, and successfully commenced operation at the end of this year. In addition, China Re HK was granted “A” rating from Standard & Poor’s and “A-” rating from A. M. Best respectively on 16 and 17 December 2019, demonstrating its solid capital base in the market.

Yuan Linjiang, Chairman of China Re Group, expressed his ardent hopes for China Re HK at the business commencement ceremony that, “China Re HK shall make use of the risk coverage, technical cooperation and financial facility functions of reinsurance, provide world-class services with China Re characteristics to Chinese insurers who seek internationalization, and provide insurers in Hong Kong and other countries and regions with China’s experiences and China Re’s wisdom! “

FORGING AHEAD WHILE FIRMLY INPLEMENTING GLOBALIZATION STRATEGY

Going global, and the world is in front of us. As the only reinsurance group in Mainland China, China Re Group has been unswerving in its “going global” strategy to continuously improve the ability and influence of China’s reinsurance industry in providing technical services overseas and become a major player in the international reinsurance market.

China Re Group is a pioneer of domestic insurer globalization, and had established a global presence prior to the 12th Five-Year Plan Period. In 2011, it took the lead in entering the Lloyd’s market and established China Re Syndicate 2088, setting a precedent of Chinese insurer joining Lloyd’s, a global insurance “elite club” with over 300 years of history and a special risk business hub market. In 2013, it held the 23rd meeting of the Federation of Afro-Asian Insurers and Reinsurers (FAIR), which facilitated further communication and cooperation between Chinese insurers and the international insurance industry. In 2015, it was successfully listed on the Hong Kong Stock Exchange, ushering in a new chapter for China Re Group’s globalization.

During the 13th Five-Year Plan Period, China Re Group’s globalization scaled new heights. Under the strategic guidance of “One Core, Three Breakthroughs and Five Leaps” (“One Three Five” strategy), its Singapore branch was set up in 2016. The company then wholly-acquired Chaucer Insurance Group in 2018, which is the biggest overseas core business acquisition project of state-owned insurers to date. Up to now, China Re Group has successively established overseas institutions in nine countries and regions including the United Kingdom, Ireland, Denmark, United Arab Emirates, Australia and Singapore, and owns the widest overseas presence among domestic insurers. On 26 August 2019, the establishment of China Re HK was approved by CBIRC. On 16 December 2019, China Re HK obtained the licence granted by the Hong Kong Insurance Authority, opening a new chapter for the global presence of China Re Group. As at the end of the third quarter of 2019, China Re Group’s overseas premium income accounted for more than 13% of its gross written premiums, and its overseas investment assets size represented 18% of its total investable assets size. It occupies a leading position in globalization among Chinese insurers, and rose in the global reinsurance ranking to No. 7, all the while maintaining its NO.1 position in Asia.

As the world’s third largest international finance centre and a key junction for the BRI, Hong Kong is one of the four central cities in the Guangdong-Hong Kong-Macau Greater Bay Area, and serves as a hub in finance, shipping, trade, international aviation and global offshore RMB business. With a highly developed life insurance market, Hong Kong is a strategic location for the global presence of major financial institutions. China Re HK project was launched early in July 2016. As a result of market, regulatory and other objective factors, however, the resumption of this application was not approved until the beginning of this year. China Re Group’s globalization strategic philosophy remains unchanged and maintains a strong and firm strategic focus. Through effectively coordinating various resources to overcome one difficulty after another, it has finally break new grounds and starts the business operation of China Re HK. This has put together a key piece for China Re Group to implement its “One Three Five” strategy and signals a breakthrough in the “going global” of life reinsurance segment.

PERFORMING REINSURANCE FUNCTIONS WHILE INNOVATING, AND ACTIVELY SERVING NATIONAL STRATEGIES

Facing the missions of the insurance industry conferred by the new era, China Re Group shares the fate and breath with China and the era and actively follows national strategies. By adhering to the innovation-driven development strategy, China Re Group led the establishment of China Nuclear Insurance Pool (CNIP) and China Agricultural Reinsurance Pool (CARP), developed China’s first rescue insurance policy, led multiple basic researches on mortality table and critical illness table, facilitated the analysis of the BRI Insurance Pool, and published China’s first self-developed earthquake catastrophe model. As at the end of 2018, China Re Group had established cooperation under the BRI framework with 31 overseas insurance institutions, ready to provide local services for China’s overseas interest and business across 135 countries and regions. With its continuous efforts, China Re Group has made its own contribution to China’s national strategies such as “Manufacturing Power”, “BRI”, disaster relief and “Healthy China” initiatives.

Currently, China’s economic growth has entered a new era of transition from rapid growth to high-quality development, which has created a new landscape of comprehensive two-way opening. China’s key regional strategic integrated development measures, represented by the development of Guangdong-Hong Kong-Macau Greater Bay Area, have become important driving forces for economic growth. China Re Group is taking an active part by expanding its presence in model innovation, product innovation and digital innovation, and further strengthening Hong Kong’s functions as global offshore RMB business hub, international asset management centre and risk management centre. Early in 2010, China Re Life under China Re Group pioneered in a comprehensive RMB cross-border reinsurance business model in Hong Kong and achieved cross-border reinsurance settlement in RMB for the first time, filling the gap in Hong Kong insurance market for RMB-denominated products. It has successively established cooperation in reinsurance business with nearly 20 companies in Hong Kong, generated a total written premium income of approximately RMB60 billion, accelerating the RMB internationalization process.

Facing the opportunities and challenges for development, He Chunlei, President of China Re Group and Chairman of China Re Life pointed out that, “Hong Kong has international and institutional advantages in financial services. China Re HK shall pay close attention to financial technology innovations and play its roles well in recommending international products and sharing experiences. It shall focus on core business, make practical innovations, diversify risks and maintain a solid foundation for Hong Kong and Asian insurance industry through professional technical services, and contribute to the stability and prosperity of Hong Kong insurance market.”

“RE” OPENING A NEW CHAPTER AND JOINING HANDS FOR A WIN-WIN FUTURE

The establishment of China Re HK has received strong help from Hong Kong Insurance Authority, as well as the keen attention and support from China Investment Corporation, the Ministry of Finance, the National Development and Reform Commission, the State Administration of Foreign Exchange, customers, partners, rating agencies, custodian banks and Chinese institutions in Hong Kong.

Following its establishment, China Re HK will carry on the solid cooperation established between China Re Life and Hong Kong customers in the past decade and effectively overcome the problems in offshore services, and better cultivate Hong Kong market. With its entrepreneurial mission of “being a trail blazer in opening up virgin lands” and craftsmanship spirit of “serving the industry with professional expertise”, it will provide customers with professional reinsurance services such as data analysis, product research and development, risk evaluation, underwriting and claim settlement, capital management and brand training, and give back to its partners which it has worked together for years.

At the business launch and strategic cooperation signing ceremony, China Re HK entered into the first batch of business contracts with China Life Insurance (Overseas) Company Limited, China Taiping Life Insurance (Hong Kong) Company Limited and BOC Group Life Assurance Company Limited, respectively, and executed strategic cooperation memorandums of understanding in the hope of achieving strategic cooperation and business development at higher levels and in deeper areas, and creating a new win-win situation. Wang Xin, Director and Chief Executive Officer of China Taiping Life Insurance (Hong Kong) Company Limited stressed in his speech that, after knowing the approval of China Re HK, China Taiping Life immediately initiated business connections to support China Re Group’s globalization strategy with practical actions. China Taiping Life hopes that both parties can fulfil their responsibilities as central state-owned insurance enterprises, care for people’s wellbeing in Hong Kong, serve Hong Kong’s economic development, and mutually contribute to the stability and prosperity of Hong Kong. Jiang Tao, Vice President of China Life Insurance (Overseas) Company Limited said that, China Re Group and China Life share the same origin and background and have worked together for years. They pursue “China Life Dream” and “China Re Dream” of developing international first-class financial and insurance groups and occupies leading positions among Chinese insurance companies in home and abroad. China Life Insurance (Overseas) firmly believes that China Re HK is a trustworthy partner and expects both parties to work together in all areas to create value, serve national strategies and “Re” open a new chapter for cooperation in the future.

With the coming of spring, everything takes on a new look. As its globalization process accelerates, China Re Group is playing a leading role in more international markets and innovative areas and marching towards an international first-class integrated reinsurance group.

China Re HK has just embarked on its journey to prosperity, and China Re Group will have a promising future.

Liu Chuanzhi and Zhu Linan Resigned, New Dual Chair members – Ning Min and Li Peng Assume Leadership Roles

Legend Holdings Corporation ( Stock Code: 3396.HK) announced that, Mr. Liu Chuanzhi, Chairman of the Board of Legend Holdings, Executive Director, and Founder of the Lenovo Group Limited will retire as the Chairman and Executive Director of the Company in accordance with a predesignated plan. He will serve as Honorary Chairman, Senior Advisor and the Member of Strategy Committee of the Board of Directors. Mr. Zhu Linan, Executive Director and the President of Legend Holdings, will resign as the President but continue to serve as Director of Legend Holdings, and he will be the Member of Strategy Committee of the Board of Directors. As a result of the recommendation from the Nomination Committee of Legend Holdings’ Board of Directors and resolution passed by Board of Directors, Mr. Ning Min, the current Executive Director, Senior Vice President and Chief Financial Officer (CFO) of Legend Holdings, will succeed Mr. Liu Chuanzhi as Chairman of the Board, and Mr. Ning Min is appointed as the Chairman of the Nomination Committee and Strategy Committee. Meanwhile, Mr. Li Peng, Senior Vice President, is appointed as the Chief Executive Officer (CEO), following the resolution passed by the Board of Directors, while the Board of Directors also recommends Mr. Li Peng to serve as Executive Director. As newly established core management team, Mr. Ning Min and Mr. Li Peng, will steer the Company towards its vision and mission and beyond.

The board of directors of Legend Holdings is convinced that Mr. Ning Min has experienced a number of transformations and ground-breaking transitional phases of the Company since 1991 when he joined Legend, and he also has in-depth understanding of the Company with extensive practical experiences. He deeply understands and appreciates our corporate vision and core values. He is blessed with grand strategic insight, solid ambition and learning ability, equipped with comprehensive capabilities. Mr. Ning Min has been a long-standing member of the executive committee of Legend Holdings and has served as CFO, overseeing the Company’s corporate finance and capital management, risk control and auditing and other works related to the capital market. He is also responsible for the operation and management of financial investments segment of Legend Holdings, playing a decisive role in strategy formulation, business development and organization framework building. Mr. Li Peng is considered as a distinguished senior management executive possessing a globalized perspective. During his 16-year experience in Legend Holdings, he has never failed to uphold our corporate culture and values. Moreover, he demonstrates a strong sense of obligation and has an innovative mindset. Mr. Li Peng has been providing indispensable assistance to Mr. Zhu Linan in governing strategic investments for many years. Mr. Li Peng has proved to be an outstanding senior management executive with professional judgement on and rich experience of both investment and corporate operations.

To develop corporate healthily and sustainably, “inheritance” is predominant, while talent recruitment, particularly the sourcing and nurturing of the leading figures, is one of the key engines during inheritance, which has been regarded as long-term strategic undertakings in Legend Holdings. Mr. Liu Chuanzhi said, “Legend Holdings is currently guided by a specific and concrete strategic blueprint, with experienced management team. This systematic inheritance plan was tailor designed and well prepared by Mr. Zhu Linan and me to satisfy the pressing needs of the overall corporate development and gained overwhelming support from the board of directors. This specific personnel re-assignment has been initiated in tandem with the pragmatic and long-standing development requirements of the Company. I am gratified to witness the plan was successfully implemented.”

“Both Mr. Liu and I hold the same view that the core management team of Legend Holdings should be comprised of members in the prime of their lives, brimming with more innovative inspiration; they must be the new blood with an international perspective,’ Mr. Zhu Linan stated, ‘both Mr. Ning Min and Mr. Li Peng are leading elites of strong integrity and qualification, ambitious and blessed with forward-looking insights. They are genuinely imbued with our corporate vision “serve the country with industrialization”, along with the guiding ideology “aim high and fly high but always keep your feet on the ground.” They both have also withstood severe challenges when serving on the front lines, making great contributions during the transitional phases of Legend Holdings. As a result, they have received full recognition from the board of directors as well as the general staff alike. We are confident with this new core management team made up by Mr. Ning Min and Mr. Li Peng.”

Curtain Call on the Founder’s Tenure with His Aspiration Inherited onto the Future

Mr. Liu Chuanzhi, the founder of Legend, was born in 1944. In 1984, at the age of 40, with the reform and opening-up in China, Mr. Liu Chuanzhi responded to the “industrialization of technology” initiated by the Chinese Academy of Sciences, and embarked on a voyage of entrepreneurship. During the past 35 years, Mr. Liu has kept aiming at higher targets and presiding over a series of successful reforms, which has laid a solid foundation for the Company’s sustainable development. This has allowed Legend to grow despite the inevitable boom and bust in the economic cycle.

The Board of Directors of Legend Holdings appraised Mr. Liu Chuanzhi: As both the founder and guiding force of Legend, Mr. Liu Chuanzhi led this company to build the vision “serve the country with industrialization” with his distinctive foresight and perseverance. The Company continues to expand its global footprint and put forth relentless efforts to cultivate new talents, and has therefore developed a business layout that covers strategic and financial investments as well as the Chinese and overseas markets. During this 35-year journey, Mr. Liu has pressed ahead with developing the corporate institutions and mechanisms, summarizing the management theory and building corporate culture. All these contributions have generated a profound influence on the long-standing development of the Company. At the same time, Mr. Liu advocates the commercial civilization in earnest and fulfills the corporate social responsibility. He is committed to passing down the spirit of “be a good person, do good deeds, and set a good example to society” from generation to generation in Legend. Beyond all the afore mentioned, Mr. Liu Chuanzhi has promoted China’s innovative transition toward an information-based society through Legend’s practice. Therefore, serving as the “Pioneer of Science and Technology Industrialization”, Mr. Liu was accredited with the honorable title “Reform Pioneer” awarded by the Central Committee of the Communist Party of China and the State Council. Mr. Liu has also led Legend to gain the upper hand in facing fierce competition from international players in the domestic market. Applying strategies such as investments and mergers and acquisitions, the Company has succeeded in expanding overseas footprint, and accumulated valuable experience for Chinese companies to “go global”. Mr. Liu has successfully implemented the shareholding reform of enterprise and also blazed a trail of structural reform for high-tech enterprises under scientific research institutes in China. Mr. Liu keeps close sight on studying the corporate management, summarizing and proposing the “three elements of Legend-style leadership”, providing helpful references to many other companies.

“Legend is a creation of the era. It is China’s reform and opening-up that enabled us to make the best of our time, to become entrepreneurs, and to grow Legend from a small institution comprised of a dozen “book-worms” to a modern corporation brimming with talents, and we have made real and practical contributions to our society. During our course of development, we gained various supports from society. We appreciate the Chinese Academy of Sciences, our largest shareholder, who has given Legend enduring trust and support amidst all the crucial phases. Our gratitude also goes to the governments at all levels that have provided us with all the prerequisite resources and meticulous instructions as well as criticism and encouragement. We are also grateful to friends from all walks of life, who have been attentive to Legend and offered us helps whenever in need.” Mr. Liu Chuanzhi presented, ‘Within my 35-years’ career path, I have realized some goals, amidst many setbacks and mistakes. I owe a debt of gratitude to my colleagues who have fought shoulder-to-shoulder with me on many challenging fronts and have supported me despite a myriad of difficulties, sharing the bitter and sweet along the way. There will, of course, be various unexpected challenges we need to confront, and Legend Holdings is still young, yet all Legenders are united with their dynamic energy and fighting spirit. It is my strong conviction that our new core leading team is endowed with surpassing ambition and adequate capacities, learning from the past and treasuring our experience. They will inherit our legacy, stay proactive and never give up; they will confront pressure and embrace emerging opportunities bravely; they will stay true to the original inspiration and endeavor to contribute the best they can to our country.”

Build up Our Strength and Compose a New Chapter

Legend was collectively founded by 11 science researchers, including Mr. Liu Chuanzhi, with the investment of RMB200,000 from the Institute of Computing Technology, Chinese Academy of Sciences in 1984. Starting in the IT sector, the Company developed and commercialized its own branded micro-computers. In 1997, Legend PC climbed to the top market ranking in China. Currently, Lenovo has evolved into a globalized leader in the fields of consumer, commercial and corporate innovative technology sector, ranking first in the global PC market.

To mitigate risks, safeguard the Company’s stability and long-term development, and promote the ground-breaking innovation in science and technology, Mr. Liu Chuanzhi successfully led and completed Legend’s spin-off in 2001. The IT sector was handed over to the younger generation while Legend Holdings began its “second start-up” stage led by Mr. Liu Chuanzhi and Mr. Zhu Linan, a new journey of investment. Committed to the “capital + service” model, the Company continuously assists the real economy and innovative entrepreneurship in China.

Mr. Zhu Linan joined Legend in 1989. He is the main leader who has promoted and implemented our key strategic transformation and business upgrading. He has been responsible for routine operations of Legend Holdings since the spin-off, and was in command of setting up the first investment arm of Legend Holdings, namely Legend Capital, which provided a solid foundation for the successful investment transformation of Legend Holdings. Later on, Hony Capital and Legend Star were successively founded, forming a full investment chain that covers the entire lifecycle of a company. In 2010, Legend Holdings further expanded the strategic investments business focusing on long-run investment linked with IT, financial services, innovative consumption and services, agriculture and food, advanced manufacturing & professional services. With his deep understanding and rich experience in business operation and investment, Mr. Zhu Linan led Legend Holdings and creatively established a unique two-wheel-drive business model of “strategic investments + financial investments” to push forward the strategy and business. During these years, the Company has accumulated rich experience and resources of talents, organizations as well as investment and post-investment management. In 2015, Legend Holdings was successfully listed on the main board of the Hong Kong Stock Exchange. Now it has developed into a leading diversified investment holding company in China, with revenue of RMB358.9 billion and total assets of RMB558.3 billion in 2018, holding more than 20 portfolio companies. The board of directors of Legend Holdings would like to express their respect and gratitude to Mr. Zhu for his contributions.

“Legend Holdings is blessed with a deep-rooted foundation and our investment holding business also has consolidated bases. Our future is confronted with challenges from new changes, new technologies and new operation models, while there is still plenty of room for innovative imagination,” Mr. Li Peng, the newly appointed CEO of Legend Holdings noted, “Supported by the board of directors, Legend Holdings will respond to current external circumstances, adapt to changes of external situations, continuously improve and optimize development strategy, and fully leverage on the unique competitive advantage of ‘Two-wheel Drive’ model. We will continue to engage in the current operating segments, further refine on asset allocation and increase returns, while dynamically grasp emerging opportunities through in-depth research on the macro-industry and proper resources allocation and continue to build pillar assets. We are also obliged to contribute to the real economy while enhancing overall corporate value. Meanwhile, we have to put forth our best efforts to develop the organizational capabilities and to perfect the tiered talent pool.”

Mr. Ning Min, the newly elected chairman, put forward the three distinctive genes deeply rooted in Legend Holdings: unswerving persistence against the countless headwinds, perseverance to reach higher goals while marching forward, and learning capacities to absorb, improve and transform.

“Mr. Liu and Mr. Zhu have exerted their full enthusiasm and wisdom on Legend Holdings amidst the stormy circumstances, steering us along the right path, while laying a sound foundation for the long-term development of our Company. Our Company has always stressed the concept of “putting people first” and provided a platform for all young talents to fully tap their potentials. By means of a carefully designed and restructured mechanism, we steadfastly allowed more junior and senior Legenders to own share rights, in order to form a close link between the growth of staff members and our Company’s long-term prospect. It is our hope that a close bond will form amongst all the Legenders to better compete on the world stage. We want to offer a helping hand to entrepreneurs and to be in the same mind as faithful collaborating partners and allies. It is fortunate for me to witness and to play a part in this thrilling cause. All thanks go to Mr. Liu and Mr. Zhu for their contributions, and I am also grateful to the board of directors for their trust and affirmation.” Mr. Ning Min stated, “Legend Holdings holds true to the vision – ‘with the mission of serving the nation and society through developing successful businesses across industries, Legend Holdings is committed to becoming a respected and trusted global holding company, with equity in leading enterprises in multiple industries with international influence.’ To achieve this is by no means an easy task; it will necessitate hard work amassed across generations. Yet, as the saying goes, ‘A journey of thousand miles begins with a single step,’ our strategic blueprint should be based on a detailed and careful study on the macro-environment to solve crucial issues and formulate a future strategy landscape. The board of directors will firmly support the management team to make long-term strategies and put them into practice; the board will also encourage the management team to make constant improvements like entrepreneurs and to create better performance and returns to the shareholders and society.”

Biography of Mr. Ning Min

Mr. Ning Min joined Legend in 1991 and currently serves as chairman of board of directors at Legend Holdings Corporation.

Mr. Ning Min has been a member of the executive committee and CFO of Legend Holdings for a long time. He is in full charge of the finance and funds, risk control and auditing, capital market as well as public relations, and oversees the financial investments business. He plays an important role in formulating the corporate strategy, business development, and organization construction. During his tenure as CFO, he made outstanding performance in the fund and financial management, as well as capital market operation, including the completion of the listing of Legend Holdings and H-share full circulation program. Mr. Ning Min also contributed great value to the Company when he oversaw the Company’s financial investments, leading to the rapid progress of Legend Capital, Hony Capital and Legend Star and the direct investment business of Legend Holdings.

Mr. Ning Min is also the director of Legend Capital, Hony Capital, Legend Star, EAL, Joyvio Group, and Levima Advanced Materials.

Mr. Ning has served successively as assistant to the president, assistant president & secretary of board, vice president, senior vice president & chief financial officer, executive director, and is now chairman of board of directors in Legend Holdings.

He has a bachelor’s degree in economics from Renmin University of China.

Biography of Mr. Li Peng

Mr. Li Peng joined Legend Holdings in 2003 and is now CEO of Legend Holdings Corporation.

As a member of the executive committee, Mr. Li has long engaged himself in the strategic investments business and post-investment management. At the preliminary phase of the Company’s strategic investments business, he participated in the formulation and implementation of investment strategies, and was responsible for the investment in and management on diversified sectors, including the successful optimization of the Company’s real estate business. The financial services business landscape is full-fledged under his leadership of financial services and overseas investments. He has also set up a team specialized in overseas investment. With his international perspective and professional knowledge, Mr. Li led his team and completed the acquisition of Banque Internationale a Luxembourg (BIL), building a new pillar asset as an outstanding contribution to the healthy development and value enhancement of Legend Holdings.

Mr. Li Peng was also responsible for the Company’s domestic and overseas financing operations.

He is now the vice chairman of BIL, and director of Lakala Payment, Zhengqi Financial and Koala Technology.

Mr. Li served as general manager of the Investment Management Department, director of the Strategic Investments Business, assistant president, vice president, senior vice president, and is now CEO.

He received a bachelor’s degree in international finance from the University of International Business and Economics and a master’s degree in business administration from New Hampshire State University. Before joining Legend, he worked in Sinotrans as well as Teradyne Connection Systems.

The Authorization on Reinsurance Business for China Re Hong Kong

On December 16th, 2019, China Reinsurance (Hong Kong) Company Limited (hereinafter referred to as “China Re Hong Kong”) was officially authorized by the Insurance Authority to carry on reinsurance business of long term business in or from Hong Kong.

China Re Hong Kong is a wholly-owned subsidiary of China Life Reinsurance Company Ltd. with a paid-up capital of HK $ 2 billion. It is registered in Hong Kong and provides a full range of risk protection and customized reinsurance solutions for Asian and global markets. China Re Hong Kong mainly operates the life and health reinsurance business, and offers a wide range of reinsurance products, such as life and health insurance, etc. By providing treaty reinsurance and facultative reinsurance, it can transfer and mitigate insurance risks via proportional or non-proportional reinsurance arrangement.

China Re Hong Kong is the first domestic insurance company approved to be established in Hong Kong since the establishment of the China Banking and Insurance Regulatory Commission. The company will give full play to the functions of risk management, technology advancement and financing in the scope of life reinsurance, as well as the “Belt and Road Initiative”, and the construction of Guangdong-Hong Kong-Macao Greater Bay Area, so as to contribute to the prosperity and development of the insurance industry in Hong Kong and Mainland China.

Powerlong Commercial Management Holdings Limited Global Offering

Powerlong Commercial Management Holdings Limited (the “Company”, together with its subsidiaries, the “Group”; Stock code: 9909), announced the details of its global offering (the “Global Offering”) and its proposed listing on the Main Board of The Stock Exchange of Hong Kong Limited (the “Stock Exchange”).

Highlights of the Global Offering:
– Number of Offer Shares under the Global Offering: 150,000,000 Shares (subject to the Over-allotment Option).
– Number of Hong Kong Offer Shares: 15,000,000 Shares (subject to reallocation).
– Number of International Offer Shares: 135,000,000 Shares (including 14,369,156 Reserved Shares under the Preferential Offering) (subject to reallocation and the Over-allotment Option).
– Offer Price: Not more than HK$10.00 per Offer Share and expected to be not less than HK$7.50, plus brokerage fee of 1.0%, SFC transaction levy of 0.0027% and Stock Exchange trading fee of 0.005% (payable in full on application in Hong Kong dollars and subject to refund).
– The Hong Kong Public Offering will commence at 09:00 a.m. on Monday, December 16, 2019 and is expected to close at 12:00 noon (at 11:30 a.m. for White Form eIPO applications) on Thursday, December 19, 2019.
– Dealings in the Shares on the Stock Exchange are expected to commence at 09:00 a.m. on Monday, December 30, 2019.
– The stock code is 9909.
– Shares of the Company will be traded in board lots of 500 Shares each.
– ABCI Capital Limited is the Sole Sponsor and the Sole Global Coordinator.
– ABCI Capital Limited, China Industrial Securities International Capital Limited, Guotai Junan Securities (Hong Kong) Limited, CRIC Securities Company Limited, Zhongtai International Securities Limited and CMB International Capital Limited are the Joint Bookrunners.

Number of Offer Shares under the Global Offering is a total of 150,000,000 Shares (subject to the Over-allotment Option). The Company is initially offering 15,000,000 Offer Shares (subject to reallocation) for subscription by the public in Hong Kong at the Offer Price, representing 10% of the total number of Offer Shares initially available under the Global Offering. The International Offering will consist of an initial offering of 135,000,000 Offer Shares (subject to reallocation and the Over-allotment Option), representing 90% of the total number of Offer Shares initially available under the Global Offering.

The Hong Kong Public Offering will commence at 09:00 a.m. on Monday, December 16, 2019 and is expected to close at 12:00 noon (at 11:30 a.m. for White Form eIPO applications) on Thursday, December 19, 2019. Dealings in the Shares on the Stock Exchange are expected to commence at 09:00 a.m. on Monday, December 30, 2019. Shares of the Company will be traded in board lots of 500 Shares each. The stock code is 9909.

Pursuant to the Over-allotment Option, the International Underwriters have the right, exercisable by the Sole Global Coordinator (on behalf of the International Underwriters) at any time from the Listing Date until 30 days after the last date for the lodging of applications under the Hong Kong Public Offering, to require the Company to issue and allot up to 22,500,000 additional Offer Shares, representing 15% of the initial Offer Shares, at the same price per Offer Share under the International Offering to cover over-allocation in the International Offering, if any.

The Company estimates that it will receive net proceeds of approximately HK$1,223.5 million from the Global Offering, after deducting the underwriting commissions and other estimated expenses payable by it in connection with the Global Offering, assuming an Offer Price of HK$8.75 per Offer Share (being the mid-point of the Offer Price range stated in the Prospectus) and that the Over-allotment Option is not exercised. The Company intends to use the net proceeds from the Global Offering for the purposes and in the amounts set forth below:

– Approximately 50% or HK$611.8 million, will be used to pursue strategic acquisition of and investment in other small to mid-sized commercial operational service providers in order to scale up the Group’s commercial operational service business and expand the Group’s commercial operational service portfolio;
– Approximately 25% or HK$305.9 million, will be used to upgrade the Group’s information technology systems for digitization and smart operation and management, aiming to enhance consumer experience, improve the quality of services provided to tenants and improve its operational efficiency;
– Approximately 10% or HK$122.4 million, will be used to make equity investment in certain tenants and suppliers with an aim of establishing close strategic cooperation with them;
– Approximately 5% or HK$61.2 million, will be used for the renovation of retail commercial properties developed or owned by Independent Third Parties under the asset-light business model;
– Approximately 10% or HK$122.4 million, will be used for general business purpose and working capital.

ABCI Capital Limited is the Sole Sponsor and the Sole Global Coordinator.

ABCI Capital Limited, China Industrial Securities International Capital Limited, Guotai Junan Securities (Hong Kong) Limited, CRIC Securities Company Limited, Zhongtai International Securities Limited and CMB International Capital Limited are the Joint Bookrunners.