GUANGZHOU, China, Jan. 16, 2024 (GLOBE NEWSWIRE) -- Puyi Inc. (NASDAQ: PUYI) (“Puyi” or the “Company”), a leading third-party wealth management services provider in China, today announced that Puyi and certain shareholders have reached share purchase agreements with New Dragon Group (Far East) Limited (“New Dragon”), an investment management company based in Hong Kong, on January 12, 2024. Pursuant to the agreements, New Dragon will invest approximately US$13 million to subscribe for 4,224,000 ordinary shares of Puyi (the “Subscribed Shares”) at an average price of approximately US$3.13 per ordinary share, or US$4.7 per ADS, equivalent to the average closing price over the 20 trading days prior to the signing date (the “Transaction”). Of the total Subscribed Shares, 2,004,000 ordinary shares will be newly issued by Puyi, and the remaining 2,220,000 ordinary shares will be existing shares from certain shareholders who are not directors or officers of the Company. Upon the completion of the Transaction, New Dragon will hold approximately 1.1% of Puyi's enlarged outstanding ordinary shares.

Commenting on the Transaction, Mr. Yong Ren, chairman of the board and Chief Executive Officer of Puyi, said, “The investment from New Dragon underscores its acknowledgment of our new acquisition-driven growth strategy. Its commitment to increasing investment in Puyi as required further demonstrates its unwavering confidence in the long-term prospects for our sustained growth.”

About Puyi

Established in 2010 and listed on Nasdaq in 2019, Puyi is a comprehensive financial technology service group based on family financial asset allocation. It focuses on providing personalized wealth management services for emerging middle-class and affluent families, comprehensive support services for financial planners, and diversified financial services for institutional clients.

Puyi Fund Sales Co., Ltd., a PRC entity contractually controlled by Puyi, holds licenses for both securities and futures business and fund distribution. Puyi has developed an industry-leading digital technology platform, which supports end-to-end transactions for over 9000 fund products offered by over 110 fund companies nationwide, as well as proprietary portfolios of publicly raised fund products on a dollar-cost averaging basis. Additionally, Puyi offers a comprehensive service ecosystem tailored for high-net-worth clients, including insurance brokerage services, trust consulting services, tax services, legal advisory services, as well as overseas asset allocation and education consulting services.