China Innovationpay acquired 51% of Qima Holdings for HKD2bn.

On 17 March 2017, the Company entered into a sale and purchase agreement to acquire 51% of the issued share capital of Qima Holdings Limited for an aggregate consideration of HKD2bn. Qima Holdings Limited is the parent company of Youzan Group which is principally engaged in the e-commerce business involving provision of a variety of online and offline solutions and services in relation to virtual wholesaling and retailing in the People’s Republic of China. It is the intention of the Company that the Group will, immediately following completion of the Youzan Acquisition, replace the existing third party payment service providers of Youzan Group and gradually become the sole third party payment service provider of Youzan Group. Such expansion is expected to contribute positively and expand the Group’s number of contracted merchants and increase the transaction volume using the Group’s third party payment services