Summary by Moomoo AI
The Guangxi Group announced on 19 January 2024 that its wholly-owned subsidiary Zhonglong Investments signed an agreement with Guangxi Industries to sell a 5% stake in its subsidiary Chenqi Technology Limited at a price of RMB267,875,531.70. The transaction increased the shareholding of Kwong Auto Industries from approximately 15.31% to approximately 20.31%, while the holding ratio of Zhonglong Investments decreased from approximately 19.89% to approximately 14.89%. The transaction is considered a connected transaction, but is exempt from compliance with the Circular and Independent Shareholder Approval as the applicable percentage is less than 5%. Proceeds from the sale will be used primarily as the Group's general operating capital. The main business of the target company Chenqi Technology Limited is travel technology and services, including e-charter and Robotaxi services. The transaction is expected to generate one-time gains of approximately RMB223 million for the Guangxi Group.