E-Hualu to divest 35% stake in subsidiary via public listing

Beijing E-Hualu Information Technology Co., Ltd. announced its decision to transfer 35% of its equity in Shandong Liaoyun Information Technology Co., Ltd. (Liaoyun Company) through a public listing on the Beijing Equity Exchange. The resolution was passed during a board meeting on December 2, 2025. Following the transfer, E-Hualu will no longer hold shares in Liaoyun Company. The transaction falls within the board's decision-making authority and does not require shareholder approval.

The transfer price for the 35% equity in Liaoyun Company will be determined based on an appraised net asset value of -RMB 43,647,800 as of May 31, 2025. After accounting for unpaid capital contributions by shareholders, the proposed listing price for the equity will not be less than RMB 14,780,600. The transaction is intended to optimize the company's subsidiary equity structure, improve asset liquidity, and provide cash flow support for its operational development.

As of the announcement date, E-Hualu has publicly listed equity in four other associate companies within the past twelve months, none of which have been successfully transacted on the Beijing Equity Exchange. The company highlighted that the counterparty for the current transaction is not yet determined, making it uncertain if it will constitute a related party transaction. Investors are advised to note the potential risks associated with the uncertainty of securing a transferee and the final transaction price.