CLOUDR (09955): Subsidiary Anhui Shengda plans to buy back approximately 4.26% equity sold for RMB21.8408 million

CLOUDR (09955) announced that after trading hours on October 28, 2026, Anhui Shengda, an indirect non-wholly-owned subsidiary of the Company (as the repurchaser), and Wuhu Venture Capital (as the counterparty) entered into a legally binding agreement for Anhui Shengda to repurchase the Sale Equity (representing approximately 4.26% equity interest in Anhui Shengda) at a consideration of RMB21.8408 million. The agreement constitutes a legally binding agreement between the parties in respect of the repurchase of the Sale Equity. Upon completion of the repurchase, Wuhu Venture Capital will no longer hold any equity interest in Anhui Shengda, and the repurchased equity will be cancelled by way of capital reduction upon completion of the repurchase. The Group's equity interest in Anhui Shengda will increase from approximately 51.25% to approximately 55.51%, and Anhui Shengda will continue to be an indirect non-wholly-owned subsidiary of the Company. Anhui Shengda is an indirect non-wholly-owned subsidiary of the Company. The Board believes that the repurchase will enable the Group to increase its equity interest in Anhui Shengda and consolidate its control over Anhui Shengda. The Directors believe that the repurchase is beneficial to the Group for the following reasons: (i) Reducing future uncertainties and optimizing the financing structure the consideration was determined by reference to the contractual repurchase price formula, which includes simple interest at 6.5% per annum. Completion of the repurchase will avoid further accrual of such returns on Wuhu Venture Capital's investment. The Company is currently able to obtain bank financing at an annual interest rate of approximately 3.0%, and therefore will not need to bear higher financing costs in the future; (ii) Increasing the Group's economic interest in Anhui Shengda upon completion, the Group's equity interest in Anhui Shengda will increase from approximately 51.25% to approximately 55.51%; (iii) Simplifying the equity structure of Anhui Shengda upon completion, Wuhu Venture Capital will no longer be a shareholder of Anhui Shengda; (iv) Reaching a contractual exit arrangement with Wuhu Venture Capital the repurchase will settle Wuhu Venture Capital's investment in Anhui Shengda and release the repurchase rights and other investor rights relating to the sold equity; and (v) Enhancing operational flexibility Wuhu Venture Capital will no longer be a minority investor, which is expected to facilitate Anhui Shengda's future management, financing, corporate restructuring and strategic development.