Yankuang Energy (01171) has announced that its board of directors, during a meeting held on the date of this announcement, considered and approved a proposal regarding the planned spin-off of its non-wholly owned subsidiary, Wubo Technology Co., Ltd., and its subsequent independent listing on the Main Board of the Hong Kong Stock Exchange. The spin-off is expected to be implemented through the issuance of new H shares by Wubo Technology, with the newly issued shares accounting for no more than 25.0% of the enlarged share capital of Wubo Technology after the issuance, prior to the exercise of any over-allotment option. Additionally, Wubo Technology may grant an over-allotment option, which could lead to the issuance of additional shares not exceeding 15% of the initial offering size. The final structure of the offering and the number of new H shares to be issued will be determined at a later stage, subject to regulatory approvals and market conditions. The board believes the spin-off offers several key benefits: (a) It will allow both Yankuang Energy and Wubo Technology to pursue more focused development and strategic planning for their respective businesses, optimize resource allocation, and improve decision-making efficiency. (b) The spin-off will enhance the operational management capabilities of both entities, enabling their management teams to concentrate more efficiently on their specific operations and improve their ability to recruit, motivate, and retain key personnel through tailored equity incentive plans. (c) It will create an independent platform for Wubo Technology to attract new investors specifically interested in its business segment, thereby broadening its shareholder base, increasing market visibility, and enhancing valuation transparency. Investors will have the option to invest in Yankuang Energy, Wubo Technology, or both, providing shareholders with opportunities to realize value from their investments. (d) Wubo Technology will gain independent listing status and a dedicated financing platform. The funds raised can be strategically deployed into core business expansion, technology research and development, and industrial chain extension, freeing Wubo Technology from internal capital allocation constraints and providing ample resources for long-term growth. Both companies will have independent access to equity and debt capital markets, improving financial flexibility and supporting sustainable development. (e) Post-spin-off, Wubo Technology will be able to focus on its core operations, forming a clearer business model and profit structure, enabling investors to better assess its industry position, growth potential, and earnings prospects. (f) The spin-off will elevate Wubo Technology’s brand value and market influence, allowing it to conduct business negotiations independently and capture more opportunities. (g) Following the spin-off, Wubo Technology’s financial results will continue to be consolidated into Yankuang Energy’s financial statements, allowing Yankuang Energy to benefit from Wubo Technology’s future growth and development.
Comments