UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 8-K

 

 

 

CURRENT REPORT

 

Pursuant to Section 13 OR 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): November 10, 2016 (November 7, 2016)

 

SINO FORTUNE HOLDING CORPORATION
(Exact name of registrant as specified in its charter)

 

 

 

Nevada   333-201037   35-2507568

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

2299 West Yan’an Road, Shanghai Mart Tower, 24 th Floor, Room 2403, Changning District, Shanghai200336, China
 (Address of Principal Executive Offices)

 

Registrant’s telephone number: +86 021-2357-0077

 

 

(Former name or former address, if changed since last report)

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):

 

[  ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
[  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

 
 

 

Item 1.01 Entry into a Material Definitive Agreement

 

On November 7, 2016, Sino Fortune Holding Corporation (“We” or the “Company”) entered into a short-term entrusted financial management contract (the “Contract”) with Shandong Wenye Investment Co., Ltd. (“Wenye”). The Contract provides that the Company will entrust RMB 50 million (approximately $7.52 million) to Wenye to make investments in purchasing principal guaranteed wealth products for the Company. The term of the Contract is six (6) months from the date of execution and can be automatically extended six (6) months with both parties’ consent.

 

The foregoing description of the Contact does not purport to be complete and is qualified in its entirety by reference to the full text of the form of the Contract attached to this Current Report on Form 8-K as Exhibit 10.1 and incorporated herein by reference.

 

Item 9.01 Financial Statements and Exhibits

 

(d) Exhibits

 

Exhibit No.   Description
     
10.1   Form of Short-term Entrusted Financial Management Contract

 

 
 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  SINO FORTUNE HOLDING CORPORATION
     
Date: November 10, 2016    
     
  By: /s/ Bodang Liu
  Name: Bodang Liu
  Title: Chief Executive Officer

 

 
 

 

Short-term Entrusted Financial Management Contract

 

Party A : Shandong Wenye Investment Co., Ltd.

 

Address: No. 168, Huayuan Road, Rongji Building, Room 2307, Licheng District, Jinan, Shandong

 

Party B : Benefactum Alliance Business Consultant (Beijing) Co.,Ltd.

 

Address: 6 Danleng Street, Building No. 1, 10/F, Room 1105 & 1106, , Haidian District, Beijing

 

On the basis of full confidence and the principle of equality and mutual benefit, Party A and Party B voluntarily reach the following agreements after friendly negotiation:

 

I. Entrusted matter

 

In order to obtain better financial returns, Party B shall entrust RMB 50,000,000 yuan (amount in words: RMB 50 million yuan) to Party A to conduct short-term financial management activities.

 

II. Scope of Party A’s authorization

 

Party A shall use Party B’s funds mainly in accordance with the items on the business license of Party A; and the investment scope shall be limited to purchasing principal guaranteed wealth products. To ensure the safety of the principal, the funds shall not be used for other purposes.

 

III. Specific requirements of the entrusted matters

 

1. Term: the term of trust management of Party B shall be six months from the date of signing this Contract. When the Contract becomes due, it can be automatically extended through negotiation of both parties, the extension of the period shall be six months.

 

2. Profit definition: Profit = final assets - initial assets - transaction cost
Profit margin: profit margin = profit /beginning assets *100%

 

3. At the end of this entrustment, if the profit margin is greater than or equal to 5%, Party B shall pay 25% of the 5% exceeded part to Party A as commission; if the profit margin is negative and less than -5%, that is, the loss is greater than 5%, Party A shall pay 25% of the 5% exceeded part to Party B as compensation.

 

 
 

 

If the profit margin is between -5% and 5%, Party B shall gain the profits or take the losses on its own.

 

For example, if the amount of fund is 1 million and the profits on maturity is 100,000, Party B shall pay (10-5) * 0.25= RMB 12,500 Yuan to Party A; if at the end the loss is 100,000, Party A shall pay (10-5) * 0.25=12500 Yuan to Party B; if the profit is between -50000 and 50000, Party B shall gain the profits or take the losses on its own.

 

4. If Party B withdraws the funds before the entrustment is due, it shall inform Party A 7 days in advance, and Party A shall make preparations to return the funds in advance. If the profits are positive, Party B shall pay 25% of the profit to Party A as commission.

 

5. If the loss is greater than 10% during the term of the Contract, Party B shall have the right to terminate the Contract and settle the account in accordance with the settlement method described in Article 3.

 

IV. Rights and obligations of both parties

 

(I) Rights and obligations of Party A

 

1. Party A shall have the right to use and manage the investment funds of Party B, but shall be highly responsible for it to ensure the safety of Party B’s funds.

 

2. During the term of the Contract, Party A shall have the responsibility and obligation to maintain and increase the value of the funds of Party B, and keep the information of Party B confidential and shall not disclose such information to others.

 

3. Party A shall comply with the agreements in the Contract regarding the dividends earned from the business, and shall distribute the dividends to the account of Party B, and it shall inform Party B of the amount of the annual dividends that are transferred to the principal.

 

(II) Rights and obligations of Party B

 

1. Party B shall provide Party A with the relevant data.

 

 
 

 

2. It shall be entitled to conduct supervision and provide advice for the management of Party A and actively support the lawful legitimate business of Party A and shall not interfere with the legitimate business of Party A.

 

3. Party B shall have the obligation to keep the business secrets of the investment and financial management provided by Party A; without the consent of Party A, Party B shall not provide or disclose the Contract and other data to third party.

 

V. Modification and termination of the Contract

 

1. If there is any modification needed or any matters not covered in the Contract, both parties shall modify it in written form or sign a supplementary contract after mutual consent of both parties.

 

2. In the course of implementing the Contract, if any disputes between the two parties arise, the disputes shall be resolved through friendly negotiation. If the disputes cannot be resolved through negotiation, either party can file a lawsuit with the People’s Court at the location of Party B.

 

VI. Other duties

 

1. The Contract is prepared in quadruplicate, with one copy held by each party respectively, which shall have the same legal force.

 

2. This Contract shall come into effect upon both parties sealing on it.

 

(No text below)

 

 
 

 

Party A (trustee): Shandong Wenye Investment Co., Ltd. [Seal]

 

Authorized representative:

 

Party B: Benefactum Alliance Business Consultant (Beijing) Co., Ltd.

 

Authorized representative:

 

Date of signing: November 7, 2016