YUEYUN TRANS (03399) intends to sell 51% equity of Foshan Yueyun for approximately 58.2445 million yuan.

YUEYUN TRANS (03399) announced that on May 20, 2026, the company entered into a property transaction agreement with Foshan Yingrui. Under this agreement, Foshan Yingrui conditionally agreed to purchase and the company conditionally agreed to sell 51% of the equity held by Foshan Yueyun for a price of RMB 58,244,500. After the completion of the sale, the company will no longer hold any equity in Foshan Yueyun, and the financial performance of Foshan Yueyun will no longer be consolidated into the company's financial statements. Foshan Yueyun is a limited company based in China, mainly engaged in urban public transport, non-residential real estate leasing, advertising-related businesses, wholesale and retail of automotive parts, sales of motor vehicle charging, operation of electric vehicle charging infrastructure, and motor vehicle repair and maintenance. Due to the rapid development of subway transportation and the significant increase in the number and use of individual transportation modes (especially electric bicycles), there has been a significant change in public travel patterns, leading to a continuous decline in the share of public transport travel. The sale of Foshan Yueyun's equity is a specific action to accelerate the divestment of non-core and non-competitive businesses with low strategic alignment. Foshan Yueyun mainly operates urban public transport in Foshan City Center under the transportation community operating model. In recent years, the public transport business has been continuously shrinking, and based on the company's strategic arrangements, Foshan Yueyun no longer intends to expand its business scale, with the trend likely to continue in the future. Valuers have valued the equity of Foshan Yueyun based on income approach and asset-based approach, with the results being similar. The core benefit of the sale 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 safety. This move will release valuable management and financial resources, allowing the company to focus and invest in core businesses with competitive advantages and growth potential. Therefore, the decision to sell is based on a comprehensive consideration of strategic, financial, and operational factors, aimed at achieving the company's long-term sustainable development, and maximizing shareholder value.