According to Zhitong Financial App, Hongqiao Group (08137) announced that on September 22, 2023 (after the transaction period), Jidi Energy, a direct non-wholly-owned subsidiary of the company, and Zhejiang Remote Intelligence entered into such a share transfer agreement. According to this, Jidi Energy has conditionally agreed to the transfer, and Zhejiang Remote Intelligence has conditionally agreed to acquire sales rights (accounting for about 100% of the shares of Jidi (China) Energy and Hangzhou Jidi Industrial). The total cost is RMB 20 million.
The company initially established Jidi (China) Energy and Hangzhou Jidi Industrial in 2019 to provide battery replacement services for electric bicycle riders. However, due to (among other things) intense market competition, sales of Jidi (China) Energy and Hangzhou Jidi Industrial have not been as good as ideal in recent years. As a result, the businesses of Jidi (China) Energy and Hangzhou Jidi Industrial have not been profitable since they began. Furthermore, the businesses of Jidi (China) Energy and Hangzhou Jidi Industrial are capital-intensive, and are currently facing financial difficulties and have only limited working capital. Therefore, the directors believe that the business prospects of Jidi (China) Energy and Hangzhou Jidi Industrial are unclear, and that further allocation of capital resources to Jidi (China) Energy and Hangzhou Jidi Industrial will no longer be in the best interests of the Group.