Wangsu Tech to transfer subsidiary equity, forgo preemptive rights

Wangsu Science & Technology (SZSE:300017) announced it will transfer portions of its equity in its subsidiary, Shenzhen Green Cloud Technology, to Yunze Technology Venture Capital and Changzhou Juke New Emerging Industry Fund, and will also waive its preemptive rights to subscribe to Green Cloud’s capital increase. Seven investors will invest a total of CNY 56.7 million in Green Cloud, subscribing for a new registered capital of CNY 14.727273 million. Following the equity transfer and capital increase, Wangsu Tech's stake in Green Cloud will decrease from 57.8076% to 29.43%, and Green Cloud will no longer be included in Wangsu Tech’s consolidated financial statements. Wangsu Tech will transfer CNY 6.926407 million and CNY 3.463203 million of Green Cloud’s registered capital for a transaction price of CNY 26.6667 million and CNY 13.3333 million, respectively. The estimated investment income is about CNY 100 million.