Forgame Invests in Internet Finance Platform Yinker Group
Builds Strategic Presence in the Internet Ecosystem

Publish Date:2016-08-04 source:Forgame

(Hong Kong, 3 August 2016) – Forgame Holdings Limited ("Forgame" or the "Group") (stock code: 484), a leading mobile games and webgames company in China, announced that the Group has entered into an investment agreement with Yinker Inc. ("Yinker Group"), an internet finance platform. Pursuant to the agreement, Forgame agreed to subscribe for the convertible bonds in aggregate principal amount of RMB300 million. The convertible bonds' maturity date is on the fifth anniversary of the issue date, and the bonds yield compound interest at the rate of 3.3% per annum, compounded bi-annually. Subject to the transaction terms and conditions, Forgame has the right to convert all or any part of the convertible bonds into preferred or common shares of Yinker Group. Assuming the conversion rights are fully exercised, Forgame will secure a total of 474,411,730 conversion shares of Yinker Group at a transaction price of RMB0.7448 per share, representing approximately 15.01% of Yinker Group's equity interest. If Yinker Group fails to achieve the performance target of net profit RMB100 million in 2017 or RMB200 million in 2018, Forgame has the right to redeem the outstanding bonds before the maturity date.

Yinker Group, incorporated in 2014 and headquartered in Beijing, is one of the top five internet finance platforms by transaction volume in China with offices in Beijing, Shanghai, Shenzhen, Guangzhou, Nanjing and Xiamen. Yinker Group primarily offers an online credit marketplace in the PRC to match borrowers with private lenders through the internet. Yinker Group owns three internet finance business brands, namely Yinker (now known as Yinkelicai), Jianlicai and Rongshidai. Under these brands, Yinker Group provides borrowers with various financing solution products, and at the same time provides private lenders with a number of products comprising of housing loans, automobile loans, and consumer loans.

For the last 12 months ended May 2016, Yinker Group has rapidly expanded and recorded transaction volume of over RMB14.8 billion, representing an approximately 8 times increase of accumulated transaction volume in such period. As one of the fastest growing internet finance platform in PRC, Yinker Group had also won numerous awards, including the Internet Society of China's 2016 Innovative Product & Services Award, as well as Zhongguancun Internet Finance Institute (CZIFI)'s 2015 Most Competitive Corporate in the PRC Internet Finance Industry Award, recognizing its outstanding performance.
The unaudited consolidated net asset value of Yinker Group as at 30 June 2016 was approximately RMB 116.5million, and the unaudited consolidated net profit before taxation for the six months ended 30 June 2016 was approximately RMB7.8 million.

Mr. Dongfeng Wang, Chairman and Chief Executive Officer of Forgame said, "The investment into Yinker Group by way of convertible bonds offers a number of benefits. Firstly, the internet finance industry is growing at an impressive rate and we believe the growth will remain strong in the foreseeable future. Secondly, Yinker targets to generate over RMB100 million and RMB 200 million net profit in 2017 and 2018, respectively. Should we convert our bonds into shares, Forgame stands to capture their net profit contribution through associate income. This will certainly strengthen Forgame's overall competitiveness, which in turn enhances our ability to attract talents and resources. Thirdly, should the investment performs up to standard, it will also provide Forgame a unique opportunity to diversify revenue and income source. Overall, the transaction can enhance Forgame's flexibility and capture the market opportunities, thus creating higher returns for shareholders."
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About Forgame Holdings Limited (stock code: 484)
Established in 2009 and listed on the Hong Kong Stock Exchange on 3 October 2013, Forgame Holdings Limited is a leading company of mobile games and webgames in China. As of 31 December 2015, the company had over 30 self-developed webgames and over 30 mobile games in operation. Its game publishing platform 91wan has distributed over 100 self-developed and licensed webgames and attracted over 225million registered players.

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