Understanding the Market | XUANWU CLOUD surged over 14% in early trading as the company introduced HanTang MingYuan as a strategic investor and transferred part of its equity in XuanTong to focus on core business

XUANWU CLOUD rose over 14% in early trading, and as of the time of writing, it has increased by 12.73%, trading at HKD 1.24. The company announced that Hantang Mingyuan plans to purchase a 20% stake for HKD 65.199 million, making Hantang Mingyuan the largest shareholder after the transaction. The chairman of the board, Chen Yonghui, will inject HKD 20 million into the non-wholly-owned subsidiary Xuantong, and Xuantong's financial performance will no longer be included in XUANWU CLOUD's consolidated financial statements. This transaction is expected to enhance capital efficiency and align with the company's transformation and sustainable development goals