KingClean Electric to divest subsidiary, boost working capital

KingClean Electric plans to divest 90% of its wholly-owned subsidiary, Suzhou KingClean Precision Machinery Co., Ltd., to Suzhou CY Resource Recycling Co., Ltd. The intended value of the subsidiary's equity is 235 million yuan, subject to valuation. This divestment aims to optimize asset structure, improve operating efficiency, and reduce costs. The transaction, approved by the board on November 20, 2025, is still in the planning phase and is not yet final.

Concurrently, KingClean Electric will close its convertible bond fundraising projects from 2022, allocating the surplus proceeds of 22,320,490 yuan to permanently supplement working capital. This includes 1,211,230 yuan from investment income and bank interest, reflecting efficient use of funds and cost control during project implementation.

The total actual funds used for the convertible bond projects amounted to 98,073,430 yuan. The surplus allocation will support the company's daily operations and business development, enhancing overall liquidity.