Yueyun Transport (03399) announced that on May 20, 2026, the company entered into an equity transaction contract with Foshan Yingrui. Under the agreement, Foshan Yingrui conditionally agreed to purchase, and the company conditionally agreed to sell, a 51% equity interest held in Foshan Yueyun for a consideration of RMB 58.2445 million. Upon completion of the disposal, the company will no longer hold any equity in Foshan Yueyun, and Foshan Yueyun's financial performance will cease to be consolidated into the company's financial statements.
Foshan Yueyun is a limited liability company incorporated in China, primarily engaged in urban public transportation, non-residential property leasing, advertising-related businesses, wholesale and retail of automotive parts, sales of motor vehicle charging services, operation of electric vehicle charging infrastructure, and motor vehicle repair and maintenance services.
Due to the rapid development of metro systems and a significant increase in the ownership and usage of individual transportation modes, particularly electric bicycles, public travel patterns have undergone notable changes, leading to a continuous decline in the share of public transit usage. The sale of the Foshan Yueyun stake represents a concrete step in accelerating the divestment of non-core, non-advantageous businesses with low strategic alignment.
Foshan Yueyun primarily operates urban bus services in Foshan's central urban area under a transport community model. In recent years, its bus operations have consistently contracted. Based on the company's strategic plans, Foshan Yueyun will not expand its operational scale, and it is foreseeable that this trend is irreversible.
An appraiser valued Foshan Yueyun's equity using both the income approach and the asset-based approach, with the valuations derived from both methods being similar. The core benefit of the disposal lies in resource optimization. By divesting Foshan Yueyun, a non-core business that does not align with the company's strategy, the company can significantly enhance asset quality and operational security. This move will free up valuable management and financial resources, allowing the company to focus more intently on and invest in its core businesses that possess competitive advantages and growth potential.
Consequently, the decision to proceed with the disposal is based on a comprehensive consideration of strategic, financial, and operational factors, aiming to achieve the company's long-term sustainable development and maximize shareholder value.