KWUNG'S AROMA (01925.HK): Announces RMB50 Million Subscription in Multi-Strategy Fund
KWUNG'S AROMA HOLDINGS LIMITED (Stock Code: 1925) announced on January 5, 2026, a discloseable transaction involving its indirect wholly-owned subsidiary Anhui Fen Yuan Fragrant Technology Co., Ltd. subscribing for interests in a private fund.
On January 5, 2026, Anhui Fen Yuan subscribed for interests in the fund for RMB50,000,000, funded by the Group's surplus cash reserves.
The fund, named Bamboo Run Multi-Strategy Enhanced Income No. 2 Private Securities Investment Fund, is managed by Shanghai Jihai Investment Management Co., Ltd. (Shanghai Bamboo Run Investment Co., Ltd.). The fund's investment strategy is to conduct top-down asset allocation based on macroeconomic analysis and overall market valuation level changes, pursuing higher returns while reducing market risk. The investment scope includes securities listed on stock exchanges, bonds, securities repurchase, fixed-income securities, bank wealth management products, deposits, interbank certificates of deposit, futures, exchange-traded options, publicly offered securities investment funds, standardized debt financing instruments, asset-backed securities and notes (excluding subordinated tranches), securities traded on the Shanghai Gold Exchange, total return swaps (including cross-border total return swaps) and over-the-counter options. The fund may participate in margin trading, Stock Connect transactions, and IPO subscriptions, and may lend its securities to securities finance companies.
The subscriber may redeem its interests in the fund after completing a 90-day subscription period without redemption cost. Management fees are charged at 1% per annum of the fund's net asset value, calculated and accrued daily and paid monthly. Custody fees and operational service fees are each charged at 0.01% per annum of the fund's net asset value, calculated and accrued daily and paid quarterly.
Shanghai Bamboo Run Investment Co., Ltd. was established under PRC law in 2019 and registered with the Asset Management Association of China as a private fund manager in October 2019 (Registration No.: P1070287), primarily engaged in asset management services in China. As of the announcement date, the fund manager has participated in managing 115 registered funds. To the best of the Directors' knowledge, information and belief after making all reasonable enquiries, Shanghai Bamboo Run Investment Co., Ltd. and its ultimate beneficial owners are independent of and not connected with the Company and its connected persons.
The Directors consider that (i) the subscription provides the Group with better returns than those typically offered by PRC commercial banks on fixed deposits; (ii) the subscription is funded by the Group's surplus cash reserves and will have no impact on the Group's working capital position or operations; and (iii) appropriate low-risk wealth management is conducive to enhancing the Group's capital efficiency and increasing returns on idle funds. Therefore, the Directors believe the subscription was conducted on normal commercial terms, is fair and reasonable, and is in the overall interests of the Company and its shareholders.
As certain applicable percentage ratios exceed 5% but are below 25% as at the announcement date, the subscription constitutes a discloseable transaction for the Company and is subject to notification and announcement requirements under Chapter 14 of the Listing Rules.
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