YGSOFT's associate company to dissolve after sustained losses

YGSOFT (SZSE:002063) announced that its associate company, Shenzhen Dexi Equity Investment Fund Management Co., Ltd. ("Dexi Investment"), will be dissolved and liquidated. This decision follows Dexi Investment's failure to attract an interested party for a previously announced 26% equity transfer by YGSOFT’s wholly-owned subsidiary, JIERUISI Detection Technology Services (Zhuhai) Co., Ltd. Dexi Investment's shareholders subsequently approved the liquidation due to continuous losses over the past five years and the absence of any managed funds.

Dexi Investment, established on September 1, 2017, is a limited liability company with a registered capital of RMB 1,000万元. As of December 31, 2024, its total assets were RMB 343.83万元, with liabilities of RMB 71.54万元 and net assets of RMB 272.29万元. The company reported zero operating revenue and a net loss of RMB -151.55万元 for 2024.

As Dexi Investment is an associate company of YGSOFT’s controlling subsidiary and not consolidated in YGSOFT’s financial statements, its dissolution and liquidation are not expected to materially impact YGSOFT's or JIERUISI's daily operations or financial performance. The move is anticipated to allow YGSOFT to better focus on its core business.