Guangdong Yueyun Transportation Company Limited (03399) disclosed that an Equity Transaction Agreement was signed on November 28, 2025, with Xiake Zhixing (Guangzhou) Technology Co. Ltd. Under this agreement, Xiake Zhixing will acquire the 59.694% stake held by Guangdong Yueyun in Shaoguan Yueyun Vehicles Transportation Co., Ltd. (Shaoguan Yueyun) for RMB134.61 million. After completion, Guangdong Yueyun will cease to hold any interest in Shaoguan Yueyun.
According to the announcement, the transaction qualifies as a discloseable transaction under Chapter 14 of the Listing Rules and is exempt from shareholders’ approval requirements. The consideration was determined through arm’s-length negotiations, referencing an appraised total shareholders’ equity of approximately RMB225.50 million for Shaoguan Yueyun as of September 30, 2024.
Shaoguan Yueyun, with principal operations in road passenger transportation, chartered buses, taxis, and related services, recorded declining profitability in recent years. Financial data prepared under Chinese Accounting Standards revealed a net profit after taxes of RMB14.81 million for the year ended December 31, 2023, dropping to RMB4.64 million in 2024, and registering a loss of RMB16.99 million for the six months ended June 30, 2025.
Guangdong Yueyun cited growing competition from rail transit and ride-hailing services as factors shrinking the passenger transportation market. Exiting the passenger transportation business is viewed as part of a broader strategy to divest non-core segments and optimize resources. Following the disposal, Shaoguan Yueyun’s results will no longer be consolidated into Guangdong Yueyun’s financial statements, and a loss of approximately RMB47.50 million is expected on the transaction. Proceeds are planned for general working capital.
As stated, the decision aligns with Guangdong Yueyun’s strategic focus on core businesses and efforts to improve operational efficiency and asset quality. No additional shareholder approval is required. Readers can refer to the announcement for details on payment schedules, valuation methodologies, and settlement terms. Shaoguan Yueyun’s stake transfer and related procedures are set to be completed within 30 days of the signing of the Equity Transaction Agreement.