Guangdong Yueyun Transportation Company Limited (Yueyun Transportation) announced on 20 May 2026 that it has signed an equity transaction agreement with Foshan Chancheng Yingrui Public Utilities Investment Co., Ltd. (Foshan Yingrui) to sell its entire 51 % stake in Foshan City Yueyun Public Transportation Co., Ltd. (Foshan Yueyun) for RMB 58.24 million (USD 8.1 million).

The disposal follows an earlier public listing process on the Guangdong United Assets and Equity Exchange. An initial reserve price of RMB 64.72 million attracted no qualifying bids; a second listing at a 10 % lower reserve secured Foshan Yingrui as the successful bidder. Yueyun Transportation will no longer hold any interest in Foshan Yueyun after completion, and the subsidiary will be de-consolidated from group accounts.

Payment will be made in two tranches: a first instalment of RMB 17.47 million (30 %) via the asset exchange within three business days of listing completion, and a remaining balance of RMB 40.77 million (70 %) payable within one year. Foshan Yingrui must provide a guarantee for the deferred payment and will pay interest at prevailing bank loan rates.

Independent valuer Guangzhou Huayi appraised Foshan Yueyun’s total shareholders’ equity at RMB 126.89 million as of 31 July 2025 using an asset-based approach; an income approach cross-check indicated RMB 125.14 million. The agreed consideration represents an 8.5 % discount to the 51 % proportionate asset value. Yueyun Transportation expects to book an estimated disposal loss of approximately RMB 5.74 million, subject to audit, with proceeds earmarked for general working capital.

Foshan Yueyun, which operates urban bus services in central Foshan, has experienced declining performance as passenger preferences shift toward subways and personal mobility. Audited figures show revenue falling from RMB 285.71 million in 2023 to RMB 213.41 million in 2025, while profit after tax edged up slightly to RMB 1.66 million in 2025. Net assets stood at RMB 137.90 million at year-end 2025.

The Hong Kong Stock Exchange has classified the transaction as a discloseable transaction (highest applicable percentage ratio between 5 % and 25 %) under Chapter 14 of the Listing Rules, requiring announcement but not shareholder approval. Closing is targeted within 60 days after receipt of the first instalment.

Yueyun Transportation stated that divesting Foshan Yueyun will streamline its portfolio by shedding a non-core, lower-growth business and allow the group to reallocate resources to areas with stronger strategic alignment and growth potential.