Invest 5G, AI and other Konka 200 million yuan to participate in the establishment of Wuzhen Digital Industry Fund
On the afternoon of March 27, Konka Group announced that in order to promote the company’s transformation and upgrading and speed up its strategic layout in industries such as 5G communications, Internet of Things, smart cities and artificial intelligence, the company plans to cooperate with Yunxiang Wuzhen Company, Jinxin Investment Company, Overseas Chinese TownThe Cultural Parent Fund, Sunac Investment Corporation, Wuzhen Kunyu Company and other partners jointly initiated the establishment of the “Wuzhen Jiayu Digital Economic Industry Fund” with a fund size of no more than US $ 500 million, of which the company (including its wholly-owned subsidiaries) intends to contribute no more than2 trillion.The OCT Cultural Parent Fund was established on May 30, 2019, terminated at the end of 2019, and announced that the total assets of the audit were 6005.120,000 yuan, with a net asset of 6003.690,000 yuan, operating income is 0 million yuan, and net profit is 3.690,000 yuan.The OCT Cultural Parent Fund is an enterprise actually controlled by the company’s controlling shareholder, OCT Group Co., Ltd.Yunxiang Wuzhen Company is a wholly-owned subsidiary of Wuzhen Industry (Tongxiang) Co., Ltd. Wuzhen Industry (Tongxiang) Co., Ltd. is a government investment platform that is wholly-owned by Tongxiang City Construction Investment Co., Ltd. and is under the management of Tongxiang City Finance Bureau.Jinxin Investment Co., Ltd. is a wholly-owned subsidiary of Tongxiang City Construction Investment Co., Ltd. Tongxiang City Construction Investment Co., Ltd. was invested and established by Tongxiang City Finance Bureau.Yunxiang Wuzhen Company and Jinxin Investment Company are acting in concert.Wuzhen Kunyu Company plans to invest 35% from Shenzhen Konka Capital Equity Investment (a wholly-owned subsidiary of the company) and Konka Venture Capital (Kangjia Venture Capital Development, which holds 51% of the company ‘s shares, holds 49% of the company ‘s equity) 5%, Shenzhen Sunac Dinghehe invested 36% and Kunyu Investment Company invested 24% to jointly set up, mainly for investment management of the fund.At present, the company is still in the preparation stage, and there is uncertainty about whether it can obtain the registration of industrial and commercial and private equity fund managers.Shenzhen Sunac Investment Consulting Co., Ltd. is the fund manager.After Wuzhen Kunyu Company completes the registration of the private equity investment fund manager, the fund manager will be changed from Sunac Investment Company to Wuzhen Kunyu Company.Wuzhen Jiayu Digital Economy Industry Fund does not exceed 500 million US dollars, of which companies (at least wholly-owned subsidiaries) contribute 200 million US dollars, Yunxiang Wuzhen Company and Jinxin Investment Company each contribute 100 million US dollars, and OCT Cultural Parent Fund 95 million yuan, Wuzhen Kunyu Company invested 5 million yuan.80% of the fund’s total contribution will be invested in strategic emerging industries such as 5G communications, Internet of Things, smart cities, artificial intelligence, big data, smart home, high-end smart manufacturing, etc .; the other 20% will be invested in healthcare, cultural industries, Fashion and other industries.At the same time, the parties agreed that it will not be less than 70% of the total subscribed capital of the fund (ie 3.5 ppm) invested in projects related to the company’s industrial development; the fund is not invested in countries with high pollution, high productivity, backward production capacity, etc. Zhejiang Province and Tongxiang City prohibit and restrict the development of industries.The announcement shows that the Fund Investment Decision Committee is composed of seven members, of which the company (called a wholly-owned subsidiary) allocates two members, and Sunac Investment and Kunyu Investment Company (shareholders of Wuzhen Kunyu Company) jointly appoint three membersCommittee member, the OCT Cultural Mother Fund appoints a committee member, and Yunxiang Wuzhen Company appoints a committee member.The vote of the investment decision-making committee shall be decided by one person and one vote. The investment decision must be approved by six or more members.Konka Group believes that this investment is to accelerate the company’s “transformation and upgrading” pace, the investment industry direction is in line with the company’s strategic layout.The company has jointly established the Overseas Chinese Town Cultural Parent Fund with other related parties and other investors to establish this fund. It will gradually give full play to and utilize the advantages of various professional capabilities and resources, accelerate the company’s main business expansion, and further enhance the company’s core competitiveness.Sauna, Ye Wang Chen Weicheng Editor Zhao Ze proofreading Li Xiangling