Glonghui December 19丨China Childcare Network (01736.HK) announced that on December 19, 2023, Nanjing Xinchuang signed an equity transfer agreement with Mr. Zhang Hua. According to this, Mr. Zhang agreed to acquire and Nanjing Xinchuang agreed to sell 10% of Deep Elements shares at a cost of RMB 1,500,000.
Deepin Elements is a limited company established in China with a registered and paid-in capital of RMB 1,000,000. It is mainly engaged in providing technology based on artificial intelligence, including item recognition, human recognition, path recognition, and behavior recognition; it also provides analytical services based on the above recognition technology, such as crowd analysis, business analysis, personalized recommendations and marketing, and intelligent shopping guides. Before entering into an equity transfer agreement, Nanjing Xinchuang held 10% of Deep Elements's shares.
Since Nanjing Xinchuang invested in Deepin Elements in 2018, Deepin Element's business conditions have not met the Group's expectations. As of the six months ended June 30, 2023, Deepin Element's net loss exceeded RMB 0.2 million. The sale will provide cash inflows to the Group, which is conducive to maintaining the Group's liquidity and overall development of the Group.