Maliyang has clarified that the acquisition of MOST KWAI CHUNG (01716) is an independent capital operation and will not create business competition with ST Jinglan. He also stated there are currently no plans for MOST KWAI CHUNG to operate indium industry projects. Maliyang, who is the Chairman of ST Jinglan (000711.SZ) and the new controlling shareholder of MOST KWAI CHUNG, made these remarks in a telephone conversation on April 24th. This is the first time the entrepreneur, who holds four degrees from Tsinghua University, has commented on the positioning of his two listed companies since completing the acquisition of a 65% stake in the Hong Kong-listed MOST KWAI CHUNG.
On March 12th, Maliyang, through his owned Xiaojun Chuanqi Limited, acquired 1.755 billion shares of MOST KWAI CHUNG for a total consideration of HK$122.2 million, equivalent to 65% of the company's issued share capital. As of April 23rd, a mandatory general offer has been completed in accordance with regulations, resulting in a total holding of 65.1%. This move has sparked interest in how he will balance the businesses of the mainland and Hong Kong listed platforms.
"First, I will fully support MOST KWAI CHUNG in strengthening its existing media business. Second, I currently do not intend for MOST KWAI CHUNG to participate in businesses related to indium and its downstream products, allowing each company to operate and develop independently to avoid core business competition. Third, I will strive to build MOST KWAI CHUNG into a high-quality company with a more international perspective and diversified operations," Maliyang responded point by point during the telephone interview.
He emphasized that this acquisition is an independent capital operation, did not use any funds from the listed company ST Jinglan, and that the two companies remain completely independent in terms of assets, finance, personnel, and business, with no existing business competition. He stressed that the underlying rationale for the acquisition is to build a dual capital platform system of "A-shares + overseas." The A-share platform will be based on the indium industry chain system Maliyang has built over the years, leveraging resources from the mainland capital market to create a high-tech new key materials business system centered on the indium industry chain.
"I have firm confidence in the mainland capital market and currently have no intention of using any capital platform other than ST Jinglan to engage in businesses related to the indium industry chain," Maliyang stated clearly.
The overseas platform is intended to establish a financing and capital operation system facing the global capital market, enabling efficient fundraising directly from overseas markets and efficient deployment into overseas projects. "The Hong Kong capital market is our best choice for overseas capital operations. It can rely on the backing of the motherland to enjoy all the advantages of a Chinese company, while also utilizing Hong Kong's unique position to rapidly access overseas resources. Between China and the West, the 'Pearl of the Orient' will always maintain its unique window status," Maliyang said.
For MOST KWAI CHUNG, Maliyang outlined a blueprint that involves both adhering to its core identity and exploring new frontiers. He stated that the existing management team and employees will continue to be retained, and he will support MOST KWAI CHUNG in enhancing, strengthening, and expanding its existing media business. Simultaneously, new business opportunities will be pursued at the appropriate time to "develop MOST KWAI CHUNG into a listed company with a more international vision and diversified operations."
Maliyang made it clear that although ST Jinglan and MOST KWAI CHUNG are independent of each other with no overlapping businesses, as the controlling shareholder of both companies, he can leverage the resource advantages of the two platforms in the future. The operational results and capital accumulation from one entity can be used to support and empower the steady growth and strategic layout of the other platform. "What I look forward to is both platforms achieving their own excellence while also enabling each other's success," Maliyang concluded.