Boyaa Interactive contributes RMB 300 million to establish industrial
funds

[28 December 2016 - Hong Kong] Boyaa Interactive International Limited, a leading online card and board game developer and operator in China, announces that Shenzhen Dong Fang BoYa Technology Co., Ltd. ("Boyaa Shenzhen"), wholly-owned subsidiary of the Group, and Shanghai Tailai Tianji Asset Management Co., Ltd. ("Shanghai Tailai Tianji") entered into the Limited Partnership Agreement pursuant to which, Boyaa Shenzhen and Shanghai Tailai Tianji agreed to establish the Limited Partnership for carrying out equity investments, venture capital investments and investments in securities.

Focus on sectors related or complementary to the Group’s core business, in line with the Group’s long-term corporate strategy

The Limited Partnership has a total capital commitment of RMB303,030,303. It is intended that Boyaa Shenzhen will be the only limited partner of the Limited Partnership and will contribute RMB300,000,000 in cash, and Shanghai Tailai Tianji, the general partner, will contribute RMB3,030,303 in cash, representing approximately 99% and 1% of the total capital contribution of the Limited Partnership, respectively. The Group intends to fund its capital contribution under the Limited Partnership Agreement using its internal resources.

The Limited Partnership will carry out equity investments, venture capital investments and investments in securities with respect to those companies engaging only in value-added telecommunications services (other than e-commerce), internet audio-visual program services, internet publication services, the operation of business premises for internet access services, production and publication of broadcasting and TV programs and other businesses related or complementary to the Group’s core business.

The Company believes that the participation in the Limited Partnership as a limited partner will provide a platform for the Group to access, explore and pursue new investment and cooperation opportunities in related or complementary businesses that are in line with the Group’s long-term corporate strategy. It will also provide the Group with an opportunity to expand and diversify its investment portfolio whilst balancing the risks and returns of the investments.

Expertise of Shanghai Tailai Tianji supports to make more effective and efficient investment decisions

Shanghai Tailai Tianji is appointed as the executive partner of the Limited Partnership and is responsible for the day to day management and operation of the Limited Partnership. Shanghai Tailai Tianji has appointed Hu Hongcui as its representative to perform its duties and obligations as the executive partner under the Limited Partnership Agreement.

Shanghai Tailai Tianji is a company established under the law of the PRC in March 2014 and is currently registered as a private equity fund manager under the Asset Management Association of China. It is principally engaged in investment and management of private equity and venture capital funds. The management team of Shanghai Tailai Tianji has extensive experience in telecommunications, internet, media, technological, agricultural, and educational investment as well as fund operation experience.

The responsibilities of Shanghai Tailai Tianji as the general partner of the Limited Partnership include but not limited to the following:

(1) decision making, execution of the investments and other business of the Limited Partnership, in particular, having regard to the investment scope of the Limited Partnership;

(2) management, maintenance and disposal of the assets of the Limited Partnership,including without limited to investments assets, non-investments assets and intellectual property;

(3) enter into and amend management agreements and custody agreements;

(4) change of name and place of registration of the Limited Partnership;

(5) subject to the compliance of the conditions and procedures as stipulated in the Limited Partnership Agreement, increase or reduce the total capital contribution of the Limited Partnership.

The Company believes that participation in the Limited Partnership also enables the Group to leverage the expertise of Shanghai Tailai Tianji in terms of asset and investment management, thereby supporting the making of more effective and efficient investment decisions.