On March 30, 2024, Yueling Shareholding (002725.SZ) announced that it planned to acquire 51% of Shanghai Yuanyue Automotive Electronics Co., Ltd. (hereinafter referred to as "Yuanyue Auto" or the "target company") held by shareholders Zhang Pengcheng and Xu Wei in cash and disclosed the "Notice on Planned Major Asset Restructuring and Signing of Equity Transfer Intention Agreement" (Announcement No.: 2024-008). Now the company has decided to terminate the planned major asset restructuring.
Since the announcement of the notice on the planned major asset restructuring, the company has actively organized the trading parties and intermediaries to promote various work of the major asset restructuring in accordance with relevant laws and regulations. During the due diligence of the target company, the target company's explanations of the problems did not eliminate reasonable doubts, and the parties could not reach a consensus on the solution to these problems. After communication and consultation with the intermediaries, the company believes that Yuanyue Auto does not currently meet the basic conditions for acquisition by a listed company and is not suitable to continue with this transaction. Based on the attitude of responsibility to shareholders, and to effectively maintain the interests of the company and all shareholders, the company believes that the planned major asset restructuring should be terminated. Although the company and the counterparty did not reach an agreement on the termination of the planned major asset restructuring, the problems with the target company have made it impossible to satisfy the implementation conditions of the equity transfer intention agreement, so the company decided to terminate the planned major asset restructuring and requested the counterparty to refund the earnest money.