JOIN-SHARE (01543): Guangdong Yuecai to Transfer All Its Shares of JOIN-SHARE to Guangdong Re-Guarantee

Stock News10-21

JOIN-SHARE (01543) announced that on October 21, 2025, it entered into a shareholders' transfer agreement with Foshan Hi-Tech, Guangdong Yuecai, Guangdong Re-Guarantee, and JOIN-SHARE. According to the internal management requirements of Guangdong Yuecai, it will transfer all its shares in JOIN-SHARE to Guangdong Re-Guarantee as a capital increase for the latter (share transfer). Upon completion of the transfer, Guangdong Yuecai will no longer be a shareholder of JOIN-SHARE, and Guangdong Re-Guarantee's holdings in JOIN-SHARE will increase from 2.5% to 10%.

According to the shareholders' transfer agreement, the rights granted to Guangdong Yuecai under the equity investment cooperation agreement will be transferred to Guangdong Re-Guarantee along with the shares. Specifically, the company will grant a put option to Guangdong Re-Guarantee, which will allow Guangdong Re-Guarantee to sell its entire equity in JOIN-SHARE to the company if the performance results of JOIN-SHARE fail to reach the “Excellent” level as per the Evaluation Measures for Government Financing Guarantee Institutions issued by the Guangdong Provincial Department of Finance for five consecutive fiscal years. Furthermore, if the profit allocated to Guangdong Re-Guarantee from JOIN-SHARE in any fiscal year is below RMB 81.12 million, the company will provide guaranteed returns to Guangdong Re-Guarantee, subject to certain terms and conditions for validity.

The granting of the put option and provision of guaranteed returns to Guangdong Re-Guarantee are standard commercial terms per the shareholders' transfer agreement. Given the high encouragement from government authorities for financing guarantee businesses, the company anticipates that the performance results of JOIN-SHARE will reach the “Excellent” level set forth by the aforementioned Evaluation Measures within one or more fiscal years. Moreover, it is expected that JOIN-SHARE will be able to fully pay the guaranteed returns to Guangdong Re-Guarantee. As profits exceeding RMB 81.12 million earned by JOIN-SHARE will only be distributed by the company and Foshan Hi-Tech based on the equity investment cooperation agreement, the arrangements for guaranteed returns and profit distribution will effectively maximize the company’s investment returns, benefiting the interests of the company and its shareholders.

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