Financing service provider Credit China Holdings and its subsidiaries plan to set up a joint venture company with Five Star Holdings. The JV will be principally engaged in providing downstream distributors of Five Stars with a one-stop service for consultation and management in P2P internet financing which focuses on supply chain financing.

 

Five Star is a comprehensive investment holding company mainly engaged in retail chain operation and supply chain management, its franchise brands include Huitongda, Kidswant and Hosjoy. The first phase of the JV  will begin with Huitongda Network Co. , a home applicant internet e-commerce company

owned by Five Star. Its e-commerce platform manages more than 5,000 downstream rural distributor outlets, with a combination of online sale and channel sale as its business model.

 

The newly established JV company will initially support the financing needs of high quality downstream distributors and rural outlets, tailor-make products based on a comprehensive understanding of supply chain operations, and provide financial services to other business segments of Five Star.

 

The JV company will be owned as to 50% by the group and 50% by Five Star, with a capital contribution of 5 million renminbi (US$816,452) each from both parties.



Li Mingshan, chairman of Credit China, said, "The group is pleased to establish partnership with Five Star to develop an innovative P2P internet supply chain financing service. Five Star’s extensive distribution channels and experienced supply chain management will synergize with Credit China’s P2P internet financing business, enabling the Group to acquire more high quality clients and promote product diversification and differentiation by financial innovation."