Xuanwu Cloud (02392) plans to introduce strategic investors to add new development momentum.

On October 20, XUANWU CLOUD (02392) announced that its shareholders Zhenghao Global, Honghan Global, and Boya, along with Hantang Mingyuan Investment Limited (referred to as "Hantang Mingyuan"), signed a sales agreement. According to the agreement, Hantang Mingyuan plans to purchase 20% of XUANWU CLOUD's issued share capital for HK$65.19 million. After the transaction is completed, Hantang Mingyuan and the company's controlling shareholder Lian Jian will become the largest shareholder group of XUANWU CLOUD. The announcement stated that Hantang Mingyuan is a company registered in Hong Kong, mainly engaged in investment business, with Lian Jian as the controlling shareholder. Lian Jian has previously served as the chairman of Shenzhen DeepTech Optoelectronic Display Technology Co., as well as director and vice chairman of Wuhu Token Sciences (300088.SZ), contributing to the company becoming a leading vendor in new energy vehicles and mobile phones. In the field of industrial investment, Lian Jian has rich practical experience. Starting in 2018, he has been focusing on research and investment in technology, new energy, and other industries, with a focus on investment opportunities in industries related to Chinese brand expansion and the Belt and Road Initiative. In addition to investing in XUANWU CLOUD, his subsidiary Shenzhen Hantang Mingyuan Investment Development Partnership Enterprise (Limited Partnership) has invested in multiple companies in the technology and new energy industries. Regarding the purpose of this investment, XUANWU CLOUD stated in the announcement that Lian Jian has always focused on investing in enterprises that align with the direction of economic structure optimization and upgrading, have good prospects, market potential, and technological advantages. He highly recognizes XUANWU CLOUD's industry-leading position in the "AI+ Enterprise Digital Services" sector, especially the company's SaaS applications and international business development in AI+ cloud communication. In the future, Lian Jian will use capital as a link to integrate company and related industry chain resources, continuously consolidate and amplify XUANWU CLOUD's competitive advantages, and help the company achieve higher quality development. It is worth noting that as of the announcement date, Lian Jian already held 1.63% of XUANWU CLOUD's issued shares. While introducing strategic investors, XUANWU CLOUD also made adjustments to its business. Another announcement released on the same day revealed that the Chairman of the Board, Chen Yonghui, will inject 20 million yuan into its non-wholly owned subsidiary, Guangzhou Xuantong Technology Co., Ltd. (referred to as "Xuantong"), as its new registered capital. At the same time, the major shareholder of Xuantong Technology, Guangzhou Xuantao Wisdom Cloud Technology Co., Ltd. (referred to as "Xuantao," a wholly-owned subsidiary of XUANWU CLOUD), has agreed to sell 16.67% and 20% of Xuantong's registered capital respectively to independent third parties, Xuantong Tongda and Xuantong Tonghe, for 500,000 yuan and 600,000 yuan each. After the above transactions are completed, Xuantong's registered capital will increase to 50 million yuan, with Chen Yonghui holding 40% equity in Xuantong, Xuantao's shareholding in Xuantong reduced to 20%, and Xuantong Tonghe and Xuantong Tongda holding 12% and 10% respectively. Other shareholders will collectively hold 18% of the shares. According to the listing rules, Xuantong's financial performance will no longer be included in XUANWU CLOUD's comprehensive financial statements. XUANWU CLOUD stated in the announcement that Chen Yonghui's acquisition of Xuantong is mainly based on strategic, operational, and financial considerations. Since its establishment in January 2024, Xuantong has been in a loss-making state, which has negatively affected XUANWU CLOUD's overall financial performance. Through this transaction, XUANWU CLOUD plans to reallocate resources within the listed company to improve capital efficiency. Furthermore, by transferring equity in Xuantong, XUANWU CLOUD is expected to generate approximately 6 million yuan in unaudited income, aligning with XUANWU CLOUD's goals of transformation, upgrading, and sustainable development.