Grand Group Investment PLC Receiving Dividend From Investee Company (7375C)

TIDMGIPO

RNS Number : 7375C

Grand Group Investment PLC

19 October 2015

 
 Press Release   19 October 2015

Grand Group Investment PLC

("Grand Group", the "Company" or the "Group")

Receiving Dividend From Investee Company

Grand Group Investment PLC (AIM:GIPO), a provider of expansion capital and value added services to China-based SMEs with high growth potential, is pleased to announce that its investee company Victory Education Investment Limited ("Victory") has declared a special dividend to its shareholders, based on its December 31, 2014 year end results. The Company has a 33% equity interest in Victory. The total gross amount of cash dividend payable to the Company is RMB 19.8 million (approximately GBP2.0 million).

The dividend declaration became effective today and the cash should be paid to Grand within one month. The Company expects the dividend will be subject to PRC withholding tax of 5%. The funds received will be used by the Company for general working capital purposes, and to make further investments.

- Ends -

For further information:

 
  Grand Group Investment PLC 
 James Newman, Non-Executive Chairman    Tel: +44 (0) 20 7398 
                                                         7710 
                                        www.grandgroupplc.com 
 
 
 ZAI Corporate Finance Limited 
 Ray Zimmerman / Ivy Wang (Nomad)   Tel: +44 (0) 20 7060 
                                                    2220 
 Steven Baird (Broker)                     www.zaicf.com

Notes to editors

About Grand Group

The Grand Group was founded in 2014 by Yang Xiao and other founding shareholders. The Company has been established for the purpose of identifying, acquiring and investing in small to medium-sized companies with high growth potential, principally operating in the People's Republic of China ("PRC").

Grand is a late stage incubator which focusses on investing in established businesses with either technology or intellectual property which the Board believes will benefit from Grand's university research resources.

Partnerships

The TKK Society has fostered and maintained a broad network of contacts with individuals at local and international higher education institutions, including: Jiangnan University; Xiamen University; Jimei University; NanYang Technological University (China); University of California Berkeley (Tan Kah Kee Hall); National University of Singapore; University of Hong Kong; Oxford Brookes University; Keuka College (New York State); and the University of Greenwich.

Amongst these universities, Grand has already established effective relationships with Jiangnan University and Jimei University for its current projects and the Directors believe that similar relationships can be developed with other universities.

Investments - Victory

Victory produces vocational training software, and most importantly training videos for basic blue collar jobs, primarily in the metal working (known in China as the "metallurgy") sector. Victory works in a field which represents one of the fundamental social problems in the PRC today: that of unskilled labour migration from the countryside to urban areas.

Upon completion of the pre-IPO reorganisation, Grand acquired 33% of Victory from Shenzhen Grand, which had previously made an investment of RMB 196 million in cash into Victory. As at 30 June 2015, in the interim accounts published on 29 September 2015, the fair value of the Company's investment in Victory has been revalued by RMB284 million to RMB480 million. The Directors understand Victory is targeting a flotation within the next two years.

Investments - WuXi Jin Xun Tong Technology Limited

WuXi Jin Xun Tong Technology Limited ("JXT") is an online learning solutions provider to China's urban and rural vocational education industry that was incorporated in 2010 in WuXi City, China. It operates an integrated online training website Gong Yuan Wang (http://www.gongyuannet.com/), which provides online training video courses for industrial workers. Gong Yuan Wang has developed an advanced data centre that is supported by one of China Telecom's three five-star internet data centres. This advanced dedicated line for connectivity ensures the stability of the system, speed of the website and security of the data. The website currently has approximately four million registered members, of which approximately two million are paying members who have already paid total membership fees of approximately RMB 200 million.

Grand made a cash investment of RMB 20million (approximately GBP 2.16 million) for a 15 per cent shareholding in JXT. As at 30 June 2015, the fair value of the Company's investment in JXT remains RMB20 million.

For further information, please visit www.grandgroupplc.com.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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October 19, 2015 11:25 ET (15:25 GMT)

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