PATEO CONNECT Technology (Shanghai) Corporation (Stock Code: 2889), through its non-wholly owned limited partnership (the Vendor), signed an agreement on November 21, 2025, to dispose of 0.24% equity interests in Avita Technology (Chongqing) Co., Ltd. (the Target Company) for RMB62.44 million. Upon completion, the Vendor will no longer hold any stake in the Target Company. Earlier disposals of 0.67% equity, including a 0.04% tranche completed on October 28, 2025, brought the total divestment in the Target Company to 0.91% across a series of transactions.
According to the announcement, the Target Company is principally engaged in motor vehicle manufacturing. Public information indicates its net assets stood at RMB8,590.13 million as of December 31, 2024, with reported losses before and after tax of RMB4,017.99 million for that year under PRC accounting standards. The Vendor originally invested RMB150 million, and as of June 30, 2025, the carrying amount on PATEO CONNECT’s consolidated balance sheet for this investment was RMB254.7 million.
The disposal, together with earlier divestments, is deemed a discloseable transaction under Chapter 14 of the Listing Rules. The transaction is expected to result in a total unaudited loss before tax of approximately RMB8.34 million. The announcement specifies that completion remains subject to certain conditions and cautions shareholders and investors not to rely on its certainty. Proceeds from the sale will serve as general working capital to support the company’s operations, and no material impact to the group’s comprehensive financial position is anticipated.
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