XUANWU CLOUD plans to introduce strategic investors to add new momentum for development

According to the Zhitong Finance APP, on October 20, XUANWU CLOUD (02392) announced that its shareholders Zhenghao Global, Honghan Global, and Baoya signed a sales agreement with Hantang Mingyuan Investment Co., Ltd. (hereinafter referred to as "Hantang Mingyuan"). According to the agreement, Hantang Mingyuan intends to purchase 20% of the total issued share capital of XUANWU CLOUD for HKD 65.199 million. Upon completion of the transaction, Hantang Mingyuan and the company's actual controller Lian Jian will become the single largest shareholder group of XUANWU CLOUD. The announcement shows that Hantang Mingyuan is a company registered in Hong Kong, mainly engaged in investment business, with Lian Jian as the actual controller. It is reported that Lian Jian has served as the chairman of Shenzhen Depu Te Optoelectronic Display Technology Co., Ltd., and as a director and vice chairman of Changxin Technology (300088.SZ), helping the company become an important partner for leading manufacturers in the new energy vehicle and mobile phone sectors. At the same time, Lian Jian has rich practical experience in industrial investment. Since 2018, he has been engaged in research and investment in industries such as technology and new energy, focusing on opportunities for Chinese brands going global and the "Belt and Road" national strategy. In addition to investing in XUANWU CLOUD, his Shenzhen Hantang Mingyuan Investment Development Partnership (Limited Partnership) has invested in multiple companies covering the technology and new energy industries. Regarding the purpose of this investment, XUANWU CLOUD pointed out in the announcement that Mr. Lian Jian has long focused on enterprises that align with the direction of economic structural optimization and upgrading, possessing good prospects, market potential, and technological advantages. He highly recognizes XUANWU CLOUD's industry leadership in the "AI + enterprise digital services" segment, especially having high expectations for the company's SaaS applications in AI + cloud communication business and international business development. In the future, Lian Jian will use capital as a link to integrate company and related industrial chain resources, continuously consolidating and amplifying XUANWU CLOUD's competitive advantages, and promoting the company to achieve higher quality development. It is worth noting that as of the announcement date, Lian Jian already holds 1.63% of the total issued shares of XUANWU CLOUD. While introducing strategic investors, XUANWU CLOUD also adjusted its own business. Another announcement released on the same day shows that the chairman of the board, Chen Yonghui, will inject HKD 20 million into the company's non-wholly-owned subsidiary, Guangzhou Xuantong Technology Co., Ltd. (hereinafter referred to as "Xuantong"), as its new registered capital. At the same time, the major shareholder of Xuantong Technology, Guangzhou Xuantao Smart Cloud Technology Co., Ltd. (hereinafter referred to as "Xuantao," a wholly-owned subsidiary of XUANWU CLOUD), agreed to sell 16.67% and 20% of Xuantong's registered capital to independent third parties Xuantong Tongda and Xuantong Tonghe for HKD 5 million and HKD 6 million, respectively. After the completion of the above transactions, Xuantong's registered capital will increase to HKD 50 million, of which Chen Yonghui will hold 40% of the equity in Xuantong, Xuantao's shareholding in Xuantong will decrease to 20%, and Xuantong Tonghe and Xuantong Tongda will hold 12% and 10% of the equity, respectively, while other shareholders will collectively hold 18% of the equity. According to the relevant listing rules, Xuantong's financial performance will no longer be included in XUANWU CLOUD's consolidated financial statements. In response, XUANWU CLOUD stated in the announcement that Chen Yonghui's acquisition of Xuantong is mainly based on strategic, operational, and financial considerations. Since its establishment in January 2024, Xuantong has been in a state of loss, adversely affecting XUANWU CLOUD's overall financial performance. Through this transaction, XUANWU CLOUD plans to reallocate resources of the listed company to enhance capital efficiency At the same time, by transferring the equity of Xuantong, XUANWU CLOUD expects to obtain approximately 6 million yuan in unaudited revenue, which also aligns with the goals of XUANWU CLOUD's transformation, upgrading, and sustainable development