Wisdom Wealth Resources Investment
Holding Group Limited
Wisdom Wealth Resources Investment Holding Group Limited (WISDOM WEALTH INVESTMENT, a company listed on the Main Board of The Stock Exchange of Hong Kong Limited with stock code 00007) is called 智富資源投資控股集團有限公司 (智富資源投資) in Chinese, and the address of its website is WWRI007.com.
Hong Kong Finance Investment Limited, Hong Kong Finance Equity Investment Limited, Hong Kong Finance Equity Management Limited and Hong Kong Finance Equity Holding Limited, all wholly-owned by Dr. Hui Chi Ming, are controlling shareholders of Wisdom Wealth Investmentp and hold 3,755,351,112 shares of Wisdom Wealth Group in total, representing 66.93% of its issued shares. Other public shareholders hold 1,855,180,282 shares of Wisdom Wealth Investment in total, representing 33.07% of its issued shares.
Wisdom Wealth Investment owns assets in four major segments, namely oil, gas and minerals resources; real estate and properties; international trade; and finance and securities.
The oil, gas and minerals resources owned by Wisdom Wealth Investment constitute important components of its assets. As approved by the government authorities in Papua New Guinea, Wisdom Wealth Investment has obtained exclusive operating rights for the construction and operation of port and terminal facilities and conducting sand mining and export business in an area of 23,300 km2 in Kikori Delta in the Gulf of Papua. Wisdom Wealth Investment has exploration, exploitation and operation rights as well as agreed profit-sharing rights of copper mine 253 in Kenya with an area of 1,056 km2 and gold mine 341 in Kenya with an area of 417 km2. Wisdom Wealth Investment also owns 7 oil and gas fields in the Arab Republic of Egypt, Tunisia and the Republic of Madagascar with a total area of 13,652 km2, and has agreed exploration, exploitation and operation rights as well as agreed profit-sharing rights in the above oil and gas blocks.
Wisdom Wealth Investment owns Smart City, a large scale integrated real estate development project in Zhanjiang, Guangdong Province, with a site area of 500 mu, planned site area of 265,000 m2 and gross floor area of 1.33 million m2. In addition, Wisdom Wealth Investment owns relevant property assets in the Rong Ning Yuan Project in Beijing. Wisdom Wealth Investment also owns the Orchid Hotel and the site for developing its ancillary facilities in Antananarivo, the capital of the Republic of Madagascar.
The business activities that Wisdom Wealth Investment invest and operate also include the development of environmental protection projects and international trade, and it has set up an import and export trading company in Qianhai, Shenzhen, for carrying out import and export business in international trade. Karl Thomson Financial Group, a wholly-owned subsidiary of Wisdom Wealth Investment, is licensed for carrying out Types 1, 2, 4, 6, 8 and 9 regulated financial activities in Hong Kong, and it has engaged in finance and securities investment business for a long time.
1, Oil, gas and minerals resources investment segment:
As approved by the government authorities in Papua New Guinea, Wisdom Wealth Investment has obtained exclusive operating rights for the construction and operation of port and terminal facilities and conducting sand mining and export business in an area of 23,300 km2 in Kikori Delta in the Gulf of Papua. Wisdom Wealth Investment has established comprehensive strategic cooperation with China Harbour Engineering Company Limited, a state-owned enterprise under the Central Government, and entrusted China Harbour Engineering to carry out the planning and construction of port fairway and terminal facilities and mining, transport, export and sale of sand in Kikori Delta, so as to jointly address the planned land reclamation projects of relevant governments in Asian regions.
Both parties leverage and complement their operational strengths to form an international strategic alliance operation company and achieve full cooperation for the development and operation of other projects arising from Wisdom Wealth Investment’s exclusive operating rights for conducting sand mining operations and construction and operation of port and terminal facilities in Kikori Delta. Wisdom Wealth Investment has also entered into an agreement with GCL Innovation Holdings Limited on cooperative operations and sales of Papua New Guinea’s river sand and gravel. Wisdom Wealth Investment owns 7 oil fields in the Arab Republic of Egypt, Tunisia and the Republic of Madagascar with a total area of 12,652 km2, respectively as follows:
(1) Wisdom Wealth Investment has exploration, exploitation, production and operation rights as well as agreed profit-sharing rights in 5 oil blocks with a total area of 2,252 km2 in the Ksar Hadada Permit area, Tunisia. Wisdom Wealth Investment has 7 years of exploration and 30 years of exploitation and operation as well as agreed profit-sharing rights.
(2) Wisdom Wealth Investment has exploration, exploitation and operation rights as well as agreed profit-sharing rights in onshore Madagascar Block 2101 oil field, which has a total area of 10,400 km2 in the northern part of Madagascar.
In accordance with the exploration, exploitation and oil and gas products production profit-sharing contract, Wisdom Wealth Group has relevant rights to carry out oil and gas exploitation in Madagascar Block 2101 oil field for 8 years (can be extended for 2 and 5 years respectively for oil and gas exploration), exploit oil and operate oil business for 25 years (can be extended for 5 years), and exploit gas and operate gas business for 35 years (can be extended for 10 years).
Wisdom Wealth Resources owns the exploration rights and profit sharing rights on Copper Mine 253 and Gold Mine 341 in Kenya, Africa.
Wisdom Wealth Resources owns the exploration rights and profit sharing rights on Mine 253 in Kenya which covers an area of 1,056 square kilometres.
The government of Kenya granted Wisdom Wealth Resources a license to explore, mine and operate industrial minerals (including but not limited to copper) in Mine 253 in Kenya.
Wisdom Wealth Resources owns the exploration rights and profit sharing rights on Mine 341 in Kenya which covers an area of 417 square kilometres. The government of Kenya granted Wisdom Wealth Resources License 341 to explore, mine and operate minerals such as gold, copper and iron in Mine 341 in Kenya. After organizing exploration, Wisdom Wealth Resources discovered and accessed rich ore belts with ideal copper and gold content. Wisdom Wealth Resources has organized exploration, mining and trial production in Mine 253 in Kenya, and the ores produced have a copper content of up to 6.65%, meeting the international standard for rich ores.
2, Real Estate and Property Investment Segment:
Wisdom Wealth Resources has a large comprehensive real estate development and operation project in Donghai Island, Zhanjiang Economic and Technological Development Zone, Guangdong Province, the PRC ("Smart City Project").
The Smart City Project is located in the core area of the central business district of Donghai Island, Zhanjiang, covering an area of 500 mu and with a planned land area of 265,000 sq.m. and a total GFA of 1.33 million sq.m., including 779,998.89 sq.m. of residential area, 193,098.11 sq.m. of commercial area and 332,485.49 sq.m. of basement area (including 10,895 indoor motor vehicle parking spaces and 5,895 non-motor vehicle parking spaces). The Smart City Project is a major development and operation project designed to build up and improve the core urban functions and comprehensive supporting facilities of Donghai Island. The Smart City Project is equipped with a full range of multi-functional facilities such as a five-star hotel, an international conference centre, an international wine trading centre, an international fishery trading centre, an indoor tropical rainforest commercial street, a college students' creative industry base, high-end office buildings and residential buildings. It is one of the most high-end large-scale comprehensive real estate development and operation projects in western Guangdong. According to a professional appraisal agency, the estimated market value of Wisdom Wealth Resources' Smart City Project in Zhanjiang as of 31 December 2019 was RMB5.2 billion.
Based on the fact that Zhanjiang's land price under bidding, auction and listing in 2019 had exceeded RMB8,000 per sq.m., the 1.33 million sq.m. of GFA of Wisdom Wealth Resources' Smart City Project has great potential for appreciation and profitability in terms of property price and property management value.
The properties owned by Wisdom Wealth Resources in Rongningyuan Community, 60 Guang'anmen South Street, Xuanwu District, Beijing include: Floor 1-2 (commercial area) of Building No.2, with a GFA of 1,323.61 sq.m.; and the parking spaces and garages of the underground parking lot of Buildings No.1-6, covering a GFA of 15,036.42 sq.m and with a total of 384 parking spaces. The underground parking lot is divided into two floors.
Rongningyuan Community, developed and operated by Beijing Yinghe Real Estate Development Co., Ltd., a wholly-owned subsidiary of Wisdom Wealth Resources, has excellent design and architectural quality and thus was awarded the honour of "Most Beautiful Community" by Beijing Municipal Government and the Luban Award, the highest architectural quality award, by the Ministry of Housing and Urban-Rural Development (MOHURD). Rongningyuan Community is located in the core area between Beijing's Second Ring Road and Third Ring Road, with complete supporting facilities around it. According to a professional appraisal agency, the appraised market value of Wisdom Wealth Resources' property assets in Beijing as of 31 December 2019 was RMB500 million.
Wisdom Wealth Resources also owns Orchid Hotel in Antananarivo, the capital of the Republic of Madagascar. It is a comprehensive three-star hotel with commercial and residential functions. The hotel property is conveniently located, close to Ivato International Airport and Ivato International Conference Center in the Republic of Madagascar.
Orchid Hotel has a total GFA of 6,500 sq.m. and a land use term of 99 years and covers an area of approximately 4,200 sq.m., of which 1,834 sq.m. have been built on and used. The hotel property consists of 5 floors and one basement. It provides 68 guest rooms, including 4 deluxe rooms and 64 standard rooms. The hotel is also equipped with a series of functional facilities such as conference rooms, fitness centres, restaurants, bars, shops, swimming pools and an outdoor parking lot. The remaining land area of 2,366 sq.m. is available for construction and operation as garden area.
3, International Trade and Environmental Resources Segment:
Through an environmental resource management company, Wisdom Wealth Resources develops and utilises environmental resources and invests in and operates environmental facilities to ensure that its development and construction of related projects meet the international environmental standards and achieve optimal performance. Moreover, it improves the environmental development conditions of oil, natural gas and mineral resources projects to maximise operational and social benefits.
Wisdom Wealth Resources continuously trades in oil, natural gas and mineral resources to pursue the best performance for the international circulation of its products and resources.
4, Financial and Securities Business Segment:
Karl Thomson Financial Group Limited ("KTFG"), a wholly-owned subsidiary of Wisdom Wealth Resources, conducts securities investment business and provides customers with securities investment, stock and futures trading, corporate financing, asset and fund management, insurance, lending, financial advisory, consulting, real estate agency and immigration consulting services. Wisdom Wealth Resources has a one-stop financial and securities service platform to provide a full range of financial products and services.
KTFG holds a Type 1 license (dealing in securities), a Type 2 license (Dealing in futures contracts), a Type 4 license (advising on securities), a Type 6 license (advising on corporate finance), a Type 8 license (securities margin financing) and a Type 9 license (asset management) granted by the Securities and Futures Commission, is a member of the Hong Kong Confederation of Insurance Brokers (HKCIB), and has a Money Lender License and an Enrolled Agent license. Wisdom Wealth Resources has financial and securities licenses and an experienced professional team. Its financial and securities business has a long history and a good reputation in the industry. As it carries out strict internal control and endeavours to maintain a high level of ethics and a good image, all its operating companies have never been condemned or punished by regulatory authorities. KTFG aims to become an outstanding Asia-based financial company operating financial services globally.
KTFG actively participates in the underwriting and distribution of financial securities. In 2020, it acted as the joint underwriter for the IPO of Natural Beauty Bio-Technology Limited (157) and participated in its subsequent share restructuring. In addition, KTFG has provided underwriting services for China Resources Gas Group Limited (1193), Rosedale Hotel Holdings Limited (1189), China Power New Energy Development Company Limited (735), etc.
KTFG has applied to the Securities and Futures Commission of Hong Kong to set up a RMB200 million fund for investment mainly in securities listed in the PRC and Hong Kong.
KTFG is actively engaged in insurance and financial management services, and has signed cooperation agreements with large insurance companies and financial groups in Hong Kong to provide various financial products, such as life insurance, accident insurance, pension insurance, medical insurance, and other wealth management products.
KTFG has established a strategic partnership with Guangdong Utrust Group, a state-owned enterprise directly under Guangdong Provincial Government, pursuant to which Wisdom Wealth Resources will invest RMB350 million to jointly set up securities joint ventures in Nansha, Guangzhou and Hong Kong to carry out relevant business.
KTFG not only holds SFC Type 1, 2, 4, 6, 8 and 9 licenses, but also has an excellent management team with a deep understanding of local culture, a broad international vision and rich professional experience. It has developed a one-stop investment service system covering investment, legal services, financial services, property management and asset allocation. Wisdom Wealth Resources' financial securities business will build on past achievements to refine the existing services, further improve the business conditions for expanding the Greater China market and achieve the goal of globalisation of business operations according to its established strategy.
After acquiring all or a majority of the controlling interests in seven oil fields in Madagascar, Egypt and Tunisia, Wisdom Wealth Resources successfully acquired the exploration and mining rights and profit sharing rights on a copper mine and a gold mine in Kenya. It also seized opportunities from sustained economic growth in mainland China and acquired properties in Beijing and a large comprehensive real estate project in Zhanjiang for development and operation with favourable terms.
In particular, in April 2020, with the approval of the government of Papua New Guinea, Wisdom Wealth Resources acquired the exclusive rights for port construction and operation and sand mining within 23,000 square kilometres of the Kikori Delta in Papua New Guinea, and established a comprehensive strategic partnership with China Harbour Engineering Company Limited. In Papua New Guinea, Wisdom Wealth Resources will be primarily engaged in the mining and export of sand, stone and minerals.
Wisdom Wealth Resources will continue to seek new development opportunities based on its existing business operations (oil, natural gas and mineral resources, real estate and property assets, international trade and financial securities), integrate overseas projects and assets concerning sand, stone, oil, natural gas, copper and gold resources for better development and operation, and improve the environmental conditions of its investment and operation projects, with a view to pursuing decent investment returns for shareholders by creating good operating conditions.