YOUNGOR Invest HK $14 Billion 800 Million Into CITIC Shares Key Layout Of Major Financial Strategic Planning

Fond of investment

(600177) continue to purchase CITIC shares (00267.HK), has invested nearly HK $15 billion, approaching the placards.

In October 20th, YOUNGOR disclosed that from September 2nd to October 19th, it spent HK $1 billion 726 million, and continued to purchase 152 million shares of CITIC stock through the two market.

At present, YOUNGOR holds 1 billion 289 million shares of CITIC shares, accounting for 4.43% of the total share capital of CITIC, and the cost of investment is about HK $14 billion 800 million.

Prior to August 7th, the shareholders' meeting adopted the motion of YOUNGOR strategic investment CITIC shares.

YOUNGOR can continue to invest in the two tier market or other ways within the range of no more than 5% of the total share capital of CITIC shares.

The scale of asset restructuring.

In fact, in January 1st to July 17th this year, YOUNGOR bought 116 million shares of CITIC shares through a wholly owned subsidiary; in July 17th, YOUNGOR signed an agreement with CITIC shares for about HK $12 billion, with HK $13.95 / shares subscribed for about 860 million shares of CITIC shares; and on July 18th ~9 month 1, YOUNGOR bought 162 million shares of CITIC shares through the two market. The paction amount was about HK $1 billion 900 million.

According to the announcement, YOUNGOR's investment in CITIC shares constitutes a major asset reorganization.

In August 4th of this year, YOUNGOR disclosed a report on major asset purchase, calling direct pfer of HK $12 billion for CITIC shares.

YOUNGOR said that through the platform of CITIC shares, it will promote the sharing of strategic resources and business opportunities at home and abroad, thus promoting strategic pformation and enhancing the overall competitiveness of the company.

It is reported that many reasons such as market volatility and fundamentals have prompted YOUNGOR to spend tens of billions of shares in cash.

In terms of financial accounting, YOUNGOR still regards CITIC shares as a sale of financial assets, and short-term stock price fluctuations do not affect the company's performance.

In addition, YOUNGOR believes that subscription has seized a good time for CITIC share price undervaluation.

Since June 2015, Hongkong's capital market has continued to decline due to the impact of the domestic capital market, and CITIC's share price has also fallen.

YOUNGOR said that at the end of 2014, the net assets of CITIC shares amounted to HK $16.79 and did not take into account the increase in net assets from the beginning of 2015 to the delivery date. Therefore, CITIC stock's current market price has a larger discount than its real value.

YOUNGOR has a special interest in asset allocation.

2015 semi annual report shows that YOUNGOR holds 10

The company's share interest is about 1 billion 200 million yuan during the reporting period.

YOUNGOR said that investment business follows the strategic plan of "pition from financial investment to industrial investment", "key layout of big finance, big health, comprehensive group and other fields".