HK Stock Market Move | XUANWU CLOUD (02392) rose more than 14% in early trading. The company introduced Han Tang Ming Yuan strategic investment, transferring part of Xuan Tong's equity to focus on core business.

XUANWU CLOUD (02392) rose more than 14% in early trading, and as of the time of writing, it had risen by 12.73% to 1.24 Hong Kong dollars. On the news front, on October 20, XUANWU CLOUD announced that Hantang Mingyuan intends to purchase 20% of XUANWU CLOUD's issued share capital for 65.19 million Hong Kong dollars. After the transaction, Hantang Mingyuan and its controlling shareholder, Lian Jian, will become the largest shareholder group of XUANWU CLOUD. The announcement stated that Mr. Lian Jian has always focused on companies that meet 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 field of "AI + enterprise digital services," especially having high hopes for the company's SaaS applications and international business development in the AI + cloud communication business. In the future, Lian Jian will use capital as a link, integrate the company and related industry chain resources, continuously consolidate and enhance XUANWU CLOUD's competitive advantage, and help the company achieve higher quality development. In addition, the chairman of the company's board of directors, Chen Yonghui, will inject 20 million yuan into its non-wholly-owned subsidiary, Xuantong, as its additional registered capital. At the same time, Xuantong's major shareholder, Xuantao, has agreed to sell 16.67% and 20% of Xuantong's registered capital to independent third parties Xuantong Tongda and Xuantong Tonghe, respectively, for 5 million and 6 million yuan each. Xuantong's financial performance will no longer be included in XUANWU CLOUD's consolidated financial statements. Through this transaction, XUANWU CLOUD plans to reallocate resources of listed company to improve capital efficiency. At the same time, by transferring Xuantong's equity, XUANWU CLOUD expects to gain approximately 6 million yuan in unaudited income, which also aligns with XUANWU CLOUD's goals of transformation, upgrading, and sustainable development.