Yanhua Smartech sells stake in subsidiary Yanhua Digital

Shanghai Yanhua Smartech Group (SZSE:002178) announced it will transfer its 80% equity stake in its holding subsidiary, Yanhua Digital Technology Co., Ltd., to individual investor Zhang Wei. The agreed transfer price is CNY 2 million. Yanhua Smartech said the sale aims to reduce operational risks, optimize the company's asset structure, and focus on core businesses. Yanhua Digital's earnings had failed to meet expectations due to market competition. The transaction means Yanhua Digital will no longer be consolidated into Yanhua Smartech's financial statements. The company estimates the sale will reduce 2025 assets by approximately CNY 1.5 billion and increase after-tax profit by approximately CNY 12,000.