Yeahka’s Associated Company Fushi to Acquire 60% of Shenzhen Zhizhanggui Cloud Service

By Abdul

HONG KONG, May 10, 2021 – (ACN Newswire via SEAPRWire.com) – Yeahka Limited (Stock Code: 9923), a leading payment-based technology platform in China, announced that Shenzhen Zhizhanggui Cloud Service Co., Ltd. (“Zhizhanggui”) and Shenzhen Leshou Cloud Technology Co., Ltd. (“Leshou”), both indirect wholly-owned subsidiaries of Yeahka, have entered into a non-legally binding memorandum of understanding with Fushi Technology (Shenzhen) Co., Ltd. (“Fushi”), an associated company of Yeahka which the Company holds approximately 47.58% equity interests in aggregate through its indirect subsidiaries, in relation to the potential disposal of 60% Zhizhanggui’s equity interests by Leshou to Fushi (the “Potential Disposal”). The Potential Disposal equates to a consideration of approximately RMB201.9 million, based on a valuation of Zhizhanggui of approximately RMB336.5 million.

The Potential Disposal, if consummated, is expected to realize gains before tax from asset disposals of over RMB200 million for the Company.

Fushi is an important member of Yeahka’s ecosystem, expanding its merchant base and providing services to more than 420,000 merchants with peak transaction counts of over 8,380,000 as of March 31, 2021.

Through the acquisition of Zhizhanggui, Fushi will obtain a cornerstone “hardware+software” standardized infrastructure and further accelerate its open-SaaS strategy by integrating the established SaaS modules to offline merchants.

Not only does the historical investment in Zhizhanggui yield significant returns, as the single largest shareholder in Fushi, Yeahka is able to focus on more asset-light, industry agnostic SaaS solutions such as “Yuehuiquan”, a blockchain’s underlying technology-based solution that enables merchants to operate their private domain traffic. Jointly with Fushi, Yeahka will continue to strengthen its SaaS portfolio and remain committed to establishing a commercial digitalized ecosystem.

Yeahka Limited is a leading payment-based technology platform in China providing payment and technology-enabled business services to merchants and consumers. The Company was listed on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) in June 2020 under the stock code “09923.HK”. The Company’s value proposition is to create a commercial digitalized ecosystem that enables seamless, convenient and reliable payment transactions between merchants and consumers and further offer a rich variety of technology-enabled business services, including (i) merchant SaaS products, which help customers improve their operational efficiency, (ii) precision marketing services, allowing customers to effectively reach their target markets, and (iii) fintech services, which cater to customers’ diverse financial needs.

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