Jinyi Group Holdings (00565) further acquired 6.87% of Edgeon's shares at a cost of approximately KRW 586 million

Zhitong Finance App News, Jinyi Group Holdings (00565) issued an announcement regarding the acquisition of Edgeon Data Co. Ltd (Edgeon) holds 17.90% of the shares. The Board of Directors is pleased to announce that the buyer and seller have recently concluded a sales agreement (Sale Agreement II), according to which the buyer has agreed to buy and the seller has agreed to sell 583,700 shares of Edge (accounting for about 6.87% of Edge's issued share capital) at a cost of 586 million won (equivalent to approximately HK$2,929,000).

As of the date of this announcement, a further acquisition was completed, and the Group's shares in Edge increased from approximately 17.90% to 24.77% immediately after completion.

The Board of Directors also hereby announces that Edge has recently allotted and issued 5.8521 million new shares to one of its shareholders, accounting for approximately 40.78% of Edge's expanded issued share capital. As a result of the share issuance, the Group's shares in Edge were reduced from 24.77% to 14.67%, and constituted 10.10% of the shares sold to Edge.

The board of directors sees the further acquisition as an extension of its property operation business and the beginning of its data center business, enabling the Group to provide customers with space and supporting services by holding or leasing land and buildings, and generate rent and service fee income from it. Following the completion of further acquisitions, the Group's shares in Edge increased from approximately 17.90% to 24.77%. Therefore, the board of directors believes that further acquisitions can maintain the Group's shares in Edge (especially considering the dilution of shares due to share issuance) and thereby maintain the Group's share of profits. This move is in line with the Group's predetermined plans and development strategy.

As far as share issuance matters are concerned, since Edge requires sufficient working capital to advance the project, it is expected that the share issuance will improve Edge's cash flow and/or debt levels, thereby supporting Edge's business operations.