[TodayIR] HKRH: Announces the Share Transaction with Luk Fook Related to CGS was completed - Enters Strategic Cooperation with Luk Fook, Joins Forces to Boost Synergies and Strengthen Brand Presence of 3D-GOLD (Hong Kong, 6 June 2014) – Hong Kong Resources Holdings Company Limited (“HKRH” or the “Group”; SEHK: 2882) is pleased to announce that all the conditions precedent under the CGS Agreement that were agreed earlier with Luk Fook 3D Management Company Limited (“Luk Fook 3D”; wholly-owned by Luk Fook Holdings (International) Limited “Luk Fook”; SEHK: 0590) were fulfilled; and the Share Transaction was completed. Upon completion, CGS will continue to be the Group’s major business arm and a subsidiary of HKRH. HKRH and Luk Fook will each hold 50% interest in CGS, and each company will invest HK$100 million in developing ‘3D-GOLD’. The Chairman of the Independent Board Committee of CGS will be Dr. Kennedy Wong; and Mr. Danny Wong will be the Chief Executive Officer. Dr. Kennedy Wong, Chairman of HKRH and 3D-GOLD, said, “I am delighted to announce that Luk Fook has officially become HKRH’s strategic partner in CGS, and we are excited to have this opportunity to further strengthen our relationship with Luk Fook. With Luk Fook’s rich operational experience and extensive network, we are optimistic that powerful synergies will be generated, leading to a more rapid enhancement of ‘3D-GOLD’ brand position and network expansion. “Despite the macro-economy and consumption sentiment remaining lackluster, we believe there is still room for growth for our retail networks in Hong Kong, Macau and the PRC. We will continue to expand the retail network of ‘3D-GOLD’ in Hong Kong and Macau with the intention to open five new shops across both areas within this year. As for the PRC market, building on the foundation of its well-established retail network, ‘3D-GOLD’ will continue to invest more resources to expand by franchise. While enlarging the coverage in China's first-tier cities, we will also extend and accelerate our penetration in the second- and third-tier cities. We have set the target expansion rate of our branded shops at 15% per year. “Moving forward, we will continue to devote resources to bolstering existing businesses and we look forward to achieving mutually beneficial results with Luk Fook, in turn, creating greater value for HKRH and delivering better returns to our shareholders and investors.”
[TodayIR] HKRH: Announces the Share Transaction with Luk Fook
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