China Software exits joint venture, to recover 86m yuan

China National Software & Service Co., Ltd. (China Software) and China Electronics Corporation (China Electronics) plan to reduce their capital contribution and exit China Logistics Group Digital Technology Co., Ltd. (Logistics Digital). Following the capital reduction, China Software and China Electronics will no longer hold equity in Logistics Digital. The total capital reduction for China Software is projected to be RMB 86,041,152.15, while China Electronics is expected to receive RMB 19,120,256.03.

The capital reduction price is based on the appraised value of the shareholders' total equity, as filed with state-owned assets regulators, and calculated proportionally to the paid-in capital. The transaction, approved by China Software's board of directors, is subject to shareholder approval. This move aligns with China Software's strategy to optimize its asset structure and focus on core businesses.

The appraised value of Logistics Digital's total shareholders' equity as of March 31, 2025, was RMB 248,563,328.42. This transaction is considered a related party transaction. The company expects to recover RMB 86,041,152.15 in funds, improving asset liquidity and supporting its transformation and development.