Gelonghui March 15 | Deutsche Bank World (02418.HK) announced that Shanghai Yuanxing Supply Chain Management (Group) Co., Ltd. (“Shanghai Yuanxing”), a shareholder of Shanghai Yuanxing Logistics Service Co., Ltd. (“Shanghai Logistics”) (an indirect wholly-owned subsidiary of the Company), made a written decision on January 18, 2024, deciding that Shanghai Yuanxing will absorb and merge with Shanghai Logistics, and Shanghai Logistics will be dissolved and cancelled.
Shanghai Logistics is 100% owned by Shanghai Yuanxing. Due to the need for optimal integration of resources and the need to reduce costs and increase efficiency, the Group decided to disband and cancel Shanghai Logistics. The specific reasons are as follows: (1) Shanghai Logistics and Shanghai Yuanxing operate similar businesses without geographical restrictions. The Group can undertake related business through Shanghai Yuanxing as the main business entity due to resource integration and streamlining of enterprises of the same type; and (2) after dissolution and cancellation of Shanghai Logistics, it can effectively reduce fixed expenses such as enterprise site leasing and repetitive job labor costs without affecting the Group's overall business development.