Dunxin Financial Holdings Limited Announces Updates and Clarifications on Recent Businesses Development
Dunxin Financial Holdings Limited (NYSE MKT: DXF) has announced plans to explore opportunities related to Metaverse technologies, following two years of research. The company aims to establish a Computing Power Investment Fund with a total investment of RMB1 billion in partnership with Fengniao (International) Network Technology. Additionally, Dunxin is collaborating with Wuhan Shumu Equity Investment Fund Management on a digital copyright trading platform. However, the transition from microfinance to Metaverse ventures poses significant risks and uncertainties, particularly due to the evolving nature of technology and the ongoing impact of COVID-19.
- Plans to explore opportunities in Metaverse technologies after extensive research.
- Collaboration with Fengniao on a RMB1 billion Computing Power Investment Fund.
- Partnership with Shumu to develop a digital copyright trading platform.
- Transition from microfinance to Metaverse involves significant risks and uncertainties.
- Potential disruption to existing business and financial condition during the transition.
- Ongoing impact of COVID-19 may affect business development.
WUHAN, China, April 1, 2022 /PRNewswire/ -- Dunxin Financial Holdings Limited (NYSE MKT: DXF) ("Dunxin" or the "Company"), a licensed microfinance lender in Hubei Province, China, today announced that the Company furthers its plan to explore new opportunities based on Metaverse related technologies after two-years' research and analysis, since the announcement of its plan to transition from microfinance to Metaverse related business in November 2021.
On December 29, 2021, Dunxin entered into a non-binding Letter of Intent on business cooperation with Fengniao (International) Network Technology Co., Ltd., a technology company based in Hong Kong that is engaged in the development of digital technology, research and development, production and sales of servers ("Fengniao"). According to this Letter of Intent, Dunxin and Fengniao plan to set up a Computing Power Investment Fund with the total investment amount of RMB1 billion, and an intelligence computing power center in Hong Kong and other overseas regions in the next three to five years. In addition, Dunxin and Fengniao plan to cooperate on setting up data center, distributed computing network, big data and computing power services. On January 10, 2022, Dunxin issued a press release under the heading "Dunxin Financial (DXF.US) Sets Up Computing Power Investment Fund and Plans of Intelligence Computing Power Centre based on Metaverse Platform," announcing that Dunxin's sets up a computing power investment fund and an intelligence computing power center. However, as of the date of this press release, the parties are still in the planning stage of the proposed collaboration.
On January 10, 2022, Dunxin entered into a non-binding Letter of Intent with Wuhan Shumu Equity Investment Fund Management Co., Ltd., a block chain game company ("Shumu"), on business cooperation. According to the Letter of Intent, Dunxin and Shumu plan to cooperate on, among others,the setup of a digital copyright online trading platform, digitalized registration, trading and protection of copyrights, block chain and digital copyrights fund. Related to this cooperation, on January 20, 2022, Dunxin issued a press release under the heading "Dunxin Financial Holdings Limited Forms Partnership with Authorized Digital Copyrights Institution to Develop Global Digital Copyrights Transaction Platform," announcing the plan to set up of a digital copyright trading platform, including proposed structure and investment amounts, among others. Although the Company has not finalized the specifics of the platform or the investment amounts due to delay caused by the resurgence of COVID-19 and extensive lockdown measures across the country, the Company plans to have further discussions with Shumu to implement the agreements under the Letter of Intent with Shumu.
Investors are cautioned that businesses based on Metaverse related technologies are new to Dunxin, and involve various uncertainties and a significant degree of risk. The transition of business from microfinance to Metaverse related industries may not be successful, may result in disruption to Dunxin's businesses and lead deteriorating financial condition or operating results. Dunxin's business and prospects may be affected by many factors, including without limitation, the development in Metaverse related technologies, changes in economic conditions in China or globally, and the resurgence of COVID-19 pandemic. This press release is intended to provide clarification and updates on Dunxin's recent business development. Investors are advised not to rely on press releases issued by Dunxin on January 10, 2022 and January 20, 2022, respectively.
About Dunxin Financial Holdings Limited
Dunxin is a licensed microfinance lender serving individuals and SMEs in Hubei Province, China. Dunxin suspended offering loans to its customers since 2020 and is exploring new business opportunities based on Metaverse related technologies.
Safe Harbor Statement
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may, "will, "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of market in China and the other international markets the Company plans to serve; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and the international markets the Company plans to serve and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward–looking statements to reflect events or circumstances that arise after the date hereof.
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SOURCE Dunxin Financial Holding Limited
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