UTour Group bolsters tourism with strategic investment, leadership change

UTour Group's subsidiary, Beijing UTour Youyou International Travel Service Co., Ltd., is set to receive a strategic capital increase, with Zhejiang Alitrip Investment Co., Ltd. contributing 15,150 yuan in exchange for a 20% equity stake. UTour Group will waive its preemptive rights, maintaining a 22.08% stake in UTour Youyou, which will remain a controlling subsidiary. This transaction makes Hangzhou Axin Network Technology Co., Ltd. (55% owned by Alitrip Investment), a UTour Group controlling subsidiary, consolidating it into UTour's financial statements.

In a related development, Mr. Fu Bipeng resigned as a non-independent director, with Mr. Zhou Xiaochen nominated as his replacement. Concurrently, UTour Group plans to utilize 63,914,667.79 yuan from its statutory surplus reserve and 343,448,699.69 yuan from its capital reserve to cover accumulated losses of 407,363,367.48 yuan as of December 31, 2024.

These moves aim to strengthen UTour Group's tourism retail segment, enhance capital structure, and enable future profit distributions by addressing the deficit. All transactions are subject to shareholder approval.