Summary by Moomoo AI
The Xiaomi Group announced on 12 January 2024 that its subsidiary Hanxing Chung entered into partnership agreements with partners such as Hangzhou Shun Cheng and Wuhan Jinshan to form an investment fund with an expected total payment of RMB24 billion. Han Xingzhao will invest RMB4.9 million in the fund, which will invest in non-listed companies in the high-tech and internet sectors in China. Once established, the Fund will not become a subsidiary of the Xiaomi Group and its financial results will not be included in the scope of the Xiaomi Group consolidated statements. Since the ordinary partners in Hangzhou Shun Heng are controlled by the Executive Director and Managing Shareholder of Xiaomi Group, Mr. Lei Jun, this transaction constitutes a connected transaction, but as the maximum applicable percentage is less than 5%, it is exempt from compliance with the requirement of independent shareholder approval. MR. LAI JUN HAS ABSTAINED FROM VOTING ON THE BOARD RESOLUTION ESTABLISHING THE PARTNERSHIP AGREEMENT.
