Wangsu Tech to sell Cloudsway stake in related-party deal

Wangsu Science & Technology (SZSE:300017) announced it will sell its 42.2997% stake in Cloudsway Pte. Ltd. to a related party for approximately CNY 10,574.9250 thousand. The buyer is an entity controlled by Liu Chengyan, Wangsu's chairman and a major shareholder. This transaction will result in Wangsu no longer holding any equity in Cloudsway, and Cloudsway will no longer be included in Wangsu's consolidated financial statements. The sale is part of Wangsu's strategic shift to focus on core CDN and edge computing businesses, and the company expects to record an investment income of approximately CNY 4 million from the deal. Cloudsway's primary business is cloud management services (MSP), and the company's most recent financials (September 30, 2024) showed assets of CNY 61.80023 million and a net profit of CNY 1.60465 million for the first nine months of 2024. The transaction has been approved by Wangsu's board of directors and is subject to customary closing conditions.