Yixin Group Limited (2858) announced on March 2, 2026, the full exercise of its conversion rights under four interest-free convertible notes previously subscribed from Yusheng. These notes were issued in 2018 (US$260.00 million), 2019 (US$43.00 million), 2020 (US$12.25 million), and 2023 (US$12.00 million), convertible at respective prices into non-voting preferred shares of Yusheng.

Upon completion of Yusheng’s reorganization, Yixin Group will receive a total of 15.15 million Series Pre-A Preferred Shares, 548,718 Series B Preferred Shares, and 462,981 Series C-2 Preferred Shares. Combined, these represent approximately 44.23% of Yusheng’s enlarged share capital. However, as these preferred shares carry no voting rights, Yixin Group will neither control Yusheng nor exercise significant influence. Consequently, Yusheng’s financials will not be consolidated and will instead be recorded at fair value through profit or loss.

Yusheng and its subsidiaries focus on the used automobile market, acquiring and reselling pre-owned vehicles online and offline. Yusheng reported unaudited losses after tax of RMB458.21 million, RMB403.01 million, and RMB699.93 million in 2023, 2024, and the nine months ended September 30, 2025, respectively, with net liabilities of RMB4.01 billion as of September 30, 2025.

Yixin Group views the conversion as an opportunity to benefit from further development in China’s used automobile market. Since at least one applicable percentage ratio surpassed 5% but remained below 25%, the transaction is classified as a discloseable transaction under the Listing Rules and requires reporting and public announcement without shareholder approval.