CEFC Financial proposes to change company name to Virtual Mind Holding strategically transforming to become a versatile manufacturer of fashionable clothing products

HONG KONG, January 11, 2022 – (ACN news wire) – – CEFC Hong Kong Financial Investment Company Limited (“CEFC Financial”, together with its subsidiaries, “the Group”; stock market code: 1520.HK) is pleased to announce its plan to change the name of the company to “Virtual Mind Holding Company LimitedTo better align with the Group’s commercial development strategies. At the same time, the Group has entered into a strategic cooperation agreement (“cooperation agreement”) with Qingdao Weiding Sports Supplies Company Limited (“Qingdao Weiding”) in fashionable clothing markets, and appointed Dr. Zhou Yibing (“Dr. Zhou”) as Creative Director (“CCO”), striving to become a comprehensive manufacturer of fashionable clothing products. The proposed change of corporate name is subject to the approval of the shareholders and the Registrar of Companies of the Cayman Islands.

Established a strategic cooperation relationship with Qingdao Weiding to seize the opportunities of the fashionable clothing market in the PRC

The recent development of the garment industry has shifted its focus to the younger generation market segment with fashionable culture. Therefore, the Group aims to seize this opportunity with a vision to develop fashionable clothing products and has actively sought new business opportunities to expand the Group’s clothing design, manufacturing and marketing activities in order to diversify from its goal of manufacturing private labels for women. clothing to become a comprehensive fashionable clothing manufacturer, tapping into the men’s and young adult markets. To carry out its strategic actions and in accordance with the cooperation agreement, the Group and Qingdao Weiding (i) will conduct in-depth intellectual property (“IP”) research and development of fashionable clothing and fashionable clothing products. ; (ii) coordinate resources, sales channels and marketing activities to increase competitive advantages in the market; (iii) share customer information, recommend customers to each other and provide services to each other’s customers for product introduction and promotion; and (iv) jointly develop new products, new businesses and new business models in the fashionable clothing market. Both parties must promote and refer to each other (i) fashion clothing orders from third parties; (ii) the application of fashionable non-sartorial branded products in individual branded products; (iii) application of the parties’ branded products in cross-collaboration with other branded products. A referral commission will be payable by the referrer to the referrer based on the successful contract amount of the clothing order, provided that a certain amount of sales and a corresponding gross profit margin are achieved. Qingdao Weiding will promote its own brand “Weiding” orders to the Group and offer the Group a reduced contract price based on the final sale price.

Qingdao Weiding is mainly engaged in the research and development, production and sale of fashionable and sports clothing and accessories. He received the famous marks of Shandong Province reward and Qingdao price and obtained ISO9001 qualification certification. The cooperation would enable the Group to take advantage of the design experience and market knowledge of Qingdao Weiding management team on sportswear in the female and male markets and expand the Group’s exposure to these market segments. The Group could also share customer information and gain in-depth knowledge of markets and access to new sales channels. In addition, the Group could exploit the intellectual property rights held by Qingdao Weiding in the development of cross-trend clothing products, which could increase the variety of the Group’s products in order to seize opportunities in the trend clothing markets in the PRC.

Appointment of Dr. Zhou Yibing, main designer of LVMH Group, as CCO to create unique fashion clothes

In addition, the Group appointed Dr. Zhou Yibing (“Dr. Zhou”), the main designer of LVMH Group, as CCO of the Group. Dr Zhou has been a designer at Givenchy since 2018 and was promoted to senior designer in 2020 and senior double star WRTW designer in 2021. Before joining Givenchy, she worked as a designer in Balmain Group and was responsible for costume jewelry in Buccellati, Italy. Dr Zhou will be responsible for managing the Group’s product design team by recruiting a team of talented young designers, with the aim of seizing the market opportunities of the young generation, developing fashionable cultural products from own brand, including clothing, cross products with other brands in order to strengthen the Group’s strategic movement to re-launch its products from womenswear to trendy clothing and other accessories products for men, women and young adults.

The group has been engaged in the clothing design industry for over 20 years and is committed to designing and manufacturing high quality fashion products. Considering the enormous potential of the fashionable clothing market, the Group’s management plans to gradually expand the Group’s fashionable clothing manufacturing business in the future and strategically transform its clothing manufacturer business. for private label women to a full-fledged fashionable clothing manufacturer. Management is glad to establish cooperation with Qingdao Weiding and invited Dr Zhou to join its product apparel design team. These changes will complete the overall strategic development master plan of the Group and strengthen its operational strategy. Taking advantage of the technology, experience and sales channels accumulated by the Group in the design and manufacture of apparel, the Group is expected to further expand its market segments in addition to its original business and develop a variety of new clothing and clothing-related product offerings. , thereby improving the profitability of the Group and the impact of its brand to create long-term returns for shareholders.

On CEFC Hong Kong Financial Investment Company Limited

CEFC Hong Kong Financial Investment Company Limited (1520.HK) is primarily engaged in (i) the design, manufacture and trade of clothing; and (ii) provision of money lending activities. The Group’s clothing activities are classified into two categories, namely private label products and private label products. Own-brand products are those designed and manufactured under private labels owned or specified by the Group’s customers, while own-brand products are those designed and manufactured under the Group’s proprietary brands. The group’s production plant is located in Jiaxing, PRC with most of the clothing products exported to the we The American market is the main market for the Group’s clothing business.

For more details, please visit www.cefcfi.com.hk

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