Dahua Tech to sell stake in subsidiary, focus on core

Zhejiang Dahua Technology (SZSE:002236) announced it will sell its 32.7321% stake in its subsidiary, Hangzhou Huacheng Network Technology, for RMB 71.68 million to Shanghai Zhicheng Enterprise Management Partnership. Another shareholder, Ningbo Huayu Investment Management Partnership, will also transfer its 18.1969% stake to Shanghai Zhicheng for RMB 39.85 million. Key employees of Huacheng Network will transfer their combined 12.8636% stake to a newly established holding entity. The move aligns with Dahua's strategy to concentrate resources and address evolving industry dynamics. The transaction is expected to generate an income of approximately RMB 530 million. Upon completion, Huacheng Network will no longer be consolidated within Dahua Tech's financial statements.