Tempus Holdings Invested RMB 60 million in Acquiring Parts of Shares of Yundongli Heading to Overseas Online Trading Business
Oct 17, 2017

Tempus Holdings Limited ("Tempus Holdings" or the "Company", stock code: 6880. HK) entered into the Investment Agreement (the "Agreement") with Ms. Wang Qing, Ms. Jiang Wei and Mr. Wang Xiaowei in relation to the Equity Transfer and the Subscription with Yundongli (Tianjin) Electronic Commerce Company Limited ("Yundongli" or the "Target Company"). Pursuant to the Agreement, Tempus Holdings conditionally agreed to purchase 8.0% equity of Yundongli through the form of equity transfer, for the consideration of RMB40 million. Tempus Holdings conditionally agreed to subscribe for RMB0.5 million in the new share capital to be issued by Yundongli, representing 4.0% of the enlarged equity interest of Yundongli upon the completion of the investment, as registered capital for the consideration of RMB20 million. Upon completion of above investment, Tempus Holdings will own RMB1.5 million registered capital in Yundongli, representing 12.0% of the enlarged equity interest in Yundongli, for the total consideration of RMB60 million.

Meanwhile, Tempus Holdings and Yundongli entered into a strategic cooperation framework agreement (the "Strategic Cooperation Agreement"). The Company principally agreed to grant the Target Company an exclusive right to sell certain OTO products on offshore third party online platforms in specified countries in North America, Europe, the Oceania and Asia. The Target Company agreed to undertake to generate a minimum annual revenue of US$10 million from such sales and to maintain an annual growth rate of not less than 40% in annual revenue. In addition, the Company and the Target Company agreed to make reasonable efforts to commence cooperation in supply chain business before the end of 2017 and to agree on the amount of supply chain services (subject to a maximum limit) to be provided by the Company to the Target Company and the rate of service charge for such services.

Mr. Li Dongming, the Chief Executive Officer and Executive Director of Tempus Holding Limited believes that the Investment pursuant to the Investment Agreement and the entering into the Strategic Cooperation Agreement will enable the Company to develop the online trading business in overseas markets fast and efficient. Through the Target Company's cooperation with renowned offshore third-party online platforms, the Company is enabled to extend the sale and distribution channels of OTO products, and boost the revenue of the Company's health and wellness products segment. On the other side, the Target Company is benefited to enrich its product lines, increase the sales, and the business of both parties are highly aligned. Meanwhile, through the layout of the Target Company's overseas warehousing and logistics platform, the Company will further enhance the turnover efficiency of existing imported goods and expand the scope of business services, thereby enhancing customer service quality. Moreover, the Company commences cooperation with the Target Company in cross-border supply chain financial business which is expected to improve the Company's cross-border trade industry chain. Otherwise, the Company plans to charge for supply chain services that is provided to the Target Company, and supply chain business is expected to increase the revenue of the Company's trading and logistics segment.

Looking forward, with the overall strategy objective of "develop global value chain, and build large consumer ecosystem", the Company will strive for further business growth through merger and acquisition in the health and wellness as well as commodity trade business sectors. Moreover, the Company will continue to identify suitable investment opportunities prudently and thoroughly, and explore potential investment projects and acquire good quality assets, thereby creating greater value for shareholders.

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