Acquisition of Three High-Quality Assets Drive Diversified Business Development for Goldstream Investment

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HONG KONG SAR – Media OutReach Newswire – 24 October 2024 – Goldstream Investment Limited (Stock Code: 01328.HK) announced that the resolutions were unanimously passed at the extraordinary general meeting held on 21 October, 2024, for the signing of three agreements, including Feasible Result agreement, USFL agreement and TechStar agreement, the Company will acquire three high-quality assets of Hony Capital Group Limited with a total consideration of approximately US$38 million.

This acquisition will not only provide stable cash flow support for the long-term development of Goldstream Investment Limited but also signifies the strategic upgrade, driving the diversification of business development and is expected to create greater value for shareholders, among these:

  • Goldstream Investment Limited acquires a 30% equity interest of Feasible Result for US$26 million, and Feasible Result indirectly owns 100% equity interest in Shanghai Li Fung, which is in turn the registered owner of LiFung Plaza. LiFung Plaza’s positioning aligns fully with Shanghai’s plan to build a “3+6” new industrial system. It has transformed into a vibrant community centered around the AI and fashion industries, drawing in a cluster of technology and new economy companies to settle in. It is expected to bring in the property rental income and long-term enhancement of value in the future;
  • The Company indirectly acquires a 32% equity interest of USFL for US$5 million. The sole assets of USFL will be 908,000 Advaccine Shares, with no liabilities. As a Company listed on the NEEQ, Advaccine is a leading biotechnology enterprise incorporated in China. Its RSV vaccine is one of the fastest-developing products in China and is expected to generate stable revenue after commercialisation;
  • The Company acquires TechStar for a total consideration of US$6.877 million for shares for sale and warrants for sale. TechStar is a Special Purpose Acquisition Company (SPAC) listed in the Stock Exchange of Hong Kong focusing on the acquisition of high-growth companies in the “new economy” sector in China. Upon successful completion of any special purpose acquisition company mergers and acquisitions transactions, it will provide the Company with potential equity value growth.

This year, Goldstream Investment Limited has embarked on a high-speed development mode. At the beginning of the year, Mr. Gao Ziqi was appointed as the Executive Director and Chief Executive Officer of Goldstream Investment, bringing new vitality into the Company’s development. On the basis of the existing fund management business, the Company has newly opened up new modules such as corporate services, financial investments, and strategic investments, promoting the Company’s strategic upgrade and diversification of business development. Goldstream Investment Limited has successively established strategic cooperation with Meitu, Inc., iDreamSky Technology Holdings Limited and SenseTime Group Limited. In the future, the Company will continue to explore strategic cooperation with other companies to identify opportunities for synergies and mutual development.

While upgrading its strategy, Goldstream Investment Limited is also committed to enhancing its risk management capabilities and improving its operational efficiency to ensure sustainable growth and profitability. Despite of the market volatility experienced in the global financial markets in the first half of 2024, Goldstream Investment Limited has shown strong resilience and growth potential in the face of market challenges. The Company’s investment management (IM) services income increased by 34.3% compared with the Last Corresponding Period, and its strategic direct investments (SDI) business also recorded a significant increase of 91.9% compared with the Last Corresponding Period. The profit before income tax increased significantly by 36.1%.

Management stated that the Company remains positive about the market in 2024 and expects the SDI and IM businesses will continue to grow momentum in the remaining part of 2024. The Company will be well-positioned to take advantage of the economy recovery in China and is confident about the future. The above-mentioned major acquisitions are beneficial for improving the Company’s fundamentals and market value. Furthermore, it is not ruled out that Hony Capital Group Limited will further add high-quality assets on favorable terms in the future.
Hashtag: #GoldstreamInvestment

The issuer is solely responsible for the content of this announcement.

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