YUEYUN TRANS (03399) sells 100% equity of Gongyun in Zhuhai for a total of RMB 25,096.1 million.

YUEYUN TRANS (03399) announced that on January 22, 2025, the company entered into a property transaction contract with Qiguan, whereby Qiguan conditionally agreed to acquire 100% equity of Zhuhai Gongyun held by the company, and the company conditionally agreed to sell it for a price of RMB 25.0961 million. In recent years, traditional road passenger transport has faced huge challenges with the rapid development of high-speed rail networks and the popularity of ride-hailing services. The emergence of new modes of transportation has intensified the operational difficulties in the passenger transport industry. People's travel habits and preferences have undergone major changes, with customized private cars, ride-hailing services, and carpooling becoming trends. The traditional operation model of passenger transport stations is rigid and unable to meet the diverse and personalized needs of modern passengers. This has led to a sharp decline in passenger flow at Zhuhai Gongyun, resulting in a significant drop in customer base and revenue. Zhuhai Gongyun has incurred losses in consecutive years from 2020 to 2022, with a slight profit in 2023. Therefore, transferring its equity at this time will help reduce the group's loss-making businesses and improve overall profitability.