XUNZHONG (02597) announced that, in line with the company's operational development plan, Beijing XUNZHONG Communication Technology Co., Ltd. intends to transfer a 49% equity stake in its wholly-owned subsidiary, Jiangsu Hongluo Network Technology Co., Ltd. (Jiangsu Hongluo), to Shanghai Hongshun Entropy Technology Co., Ltd. (Shanghai Hongshun). The stake corresponds to a registered capital subscription of RMB 10 million, with a paid-in capital contribution of RMB 2.503 million.

The pricing for this equity transaction is based on Jiangsu Hongluo's registered capital. As the 49% stake being transferred corresponds to capital that has not yet been fully paid in, the transfer price is RMB 0. Upon completion of the equity transfer, Shanghai Hongshun will fulfill the corresponding capital contribution obligations according to the proportion of equity it acquires. Specific terms will be subject to the formal agreement signed by both parties.

Shanghai Hongshun is not a related party to the company, and this transaction does not constitute a connected transaction. The relevant equity transfer procedures will commence following approval by the company's board of directors. Upon completion, the company will retain a 51% stake in Jiangsu Hongluo, while Shanghai Hongshun will hold the remaining 49%.

This divestment of equity in a wholly-owned subsidiary is based on the company's overall strategic development considerations. It aims to optimize the business layout and investment structure, enabling the company to leverage partner resources to develop advantageous business segments, thereby enhancing overall profitability and core competitiveness.