China Childcare Network (01736) announced that on December 19, 2023, Nanjing Xinchuang, a subsidiary of the company, signed an equity transfer agreement with Zhang Hua. Mr. Zhang agreed to buy and Nanjing Xinchuang agreed to sell 10% of Deep Elements shares at a cost of RMB 1.5 million.
Since Nanjing Xinchuang invested in Deepin Elements in 2018, Deepin Element's business conditions have not met the Group's expectations. As of June 30, 2023, Deepin Element's net loss exceeded RMB 200,000. The sale will provide cash inflows to the Group, which is conducive to maintaining the Group's liquidity and overall development of the Group. The directors believe that the equity transfer agreement has been negotiated in accordance with fair standards and normal commercial terms, is fair and reasonable, and conforms to the overall interests of the company and its shareholders.