Mingjiahui plans to sell a 55% equity stake in Yongqi Lighting for RMB 280 million

On the evening of June 29, Mingjiahui announced that it plans to sell a 55% equity stake in Zhejiang Yongqi Lighting Engineering Co., Ltd. (hereinafter referred to as "Yongqi Lighting") for RMB 280.5 million. The cash consideration from the transfer will be used to supplement working capital and daily operations. In the future, the company will continue to focus on its three core businesses: lighting engineering, smart light poles, and cultural tourism night tours.

The announcement shows that Mingjiahui announced in March 2018 the acquisition of a 55% equity stake in Yongqi Lighting, with a transaction consideration of RMB 247.5 million.

On June 28, in order to optimize its asset structure, Mingjiahui signed an Equity Transfer Agreement with Ningbo Cultural Tourism Investment Group Co., Ltd. (hereinafter referred to as "Ningbo Cultural Tourism") and Hangzhou Tianmai Network Co., Ltd. (hereinafter referred to as "Hangzhou Tianmai"). Ningbo Cultural Tourism and Hangzhou Tianmai intend to purchase the 55% equity interest in Yongqi Lighting held by the Company for RMB 281 million (corresponding to a registered capital of RMB 11 million).

Ningbo Cultural Tourism intends to acquire a 48% equity interest in the target company (corresponding to registered capital of RMB 9.6 million), with an equity transfer price of RMB 245 million; Hangzhou Tianmai intends to acquire a 7% equity interest in the target company (corresponding to registered capital of RMB 1.4 million), with an equity transfer price of RMB 35.7 million.

永麒照明的主营业务涵盖照明设计，照明工程施工、安装及设计，LED 照明器材及控制系统的设计、研发、制造、加工、批发、零售等。2020年，永麒照明实现营收2.26亿元，净利润为3418万元。2021年第一季，该公司实现营收4199万元，净利润为639万元。本次交易完成后，永麒照明将不再纳入名家汇的合并报表范围。

The announcement states that Xu Jianping, a director and president of the company, also serves as the chairman and shareholder of Yongqi Lighting. After the sale, Yongqi Lighting will become a related party of the company. The guarantees provided by the company for Yongqi Lighting and its subsidiaries constitute external guarantees and related-party guarantees. The company will timely fulfill the corresponding review procedures and disclosure obligations for the related-party guarantees formed subsequently.

Mingjiahui stated that, in implementing its "One Core, Two Wings" development strategy, the company requires substantial working capital to support the growth of its three major business segments: lighting engineering, smart street poles, and cultural tourism night tours.

Following the sale of the controlling stake in Yongqi Lighting, the Company will promptly receive cash consideration from the equity transfer to replenish working capital and support daily operations. This will alleviate and effectively improve current financial pressure, help revitalize existing assets, optimize the asset-liability structure, reduce operational risks, and enhance the quality of the Company's development.