Planetree International Development Limited (613) released a supplemental announcement regarding the issuance of new shares by its subsidiary, PCL, in exchange for shares held by a subscriber. The original announcement dated 17 September 2025 outlined the transaction terms, and the new statement provides additional insights into the rationale behind the subscription arrangement, highlighting potential benefits of resource sharing, risk mitigation, and enhanced market competitiveness.

According to the information disclosed, PCL and the subscriber have established a cross-ownership structure intended to achieve economies of scale and reduce operating costs. The cross-holdings enable the parties to share licenses, refer clients for financial services, and explore synergies in areas such as corporate finance advisory, money lending, securities brokerage, asset management, and the operation of AI supercomputing centers. The announcement notes that both parties can benefit from expanded service offerings and strengthen joint competitive advantages.

Upon completion of the transaction on 22 October 2025, Planetree International Development Limited holds approximately 14.8% voting rights in the subscriber, making it the subscriber’s single largest shareholder. Meanwhile, the subscriber holds about 29.8% of PCL, entitling the subscriber to nominate three directors to the six-member board of PCL. Planetree International Development Limited retains control of PCL with a 70.2% voting stake in shareholders’ meetings, and the board chairman—nominated by Planetree International Development Limited—holds a casting vote when necessary.

The statement notes that PCL’s financial results will continue to be consolidated into Planetree International Development Limited’s financial statements as a non-wholly-owned subsidiary. This arrangement, combined with the cross-holdings, is expected to support collaboration, improve operational efficiency, and open new growth opportunities for both PCL and the subscriber.