According to the Zhitong Finance App, Deutsche Bank World (02418) issued an announcement. Shanghai Yuanxing Supply Chain Management (Group) Co., Ltd., the shareholder of Shanghai Yuanxing Logistics Service Co., Ltd. (an indirect wholly-owned subsidiary of the company), made a written decision on January 18, 2024, deciding that Shanghai Yuanxing will absorb and merge Shanghai Logistics, and Shanghai Logistics will be dissolved and cancelled.

Shanghai Logistics was founded in May 2015 with a registered capital of RMB 10 million. It is mainly engaged in supply chain, vehicle sales and aftermarket business. It is 100% owned by Shanghai Yuanxing, a direct wholly-owned subsidiary of the company.

Shanghai Logistics is 100% owned by Shanghai Yuanxing. Due to the need for optimal integration of resources and the need to reduce costs and increase efficiency, the Group decided to disband and cancel Shanghai Logistics. The specific reasons are as follows: (1) Shanghai Logistics and Shanghai Yuanxing operate similar businesses without geographical restrictions. The Group can undertake related business through Shanghai Yuanxing as the main business entity due to resource integration and streamlining of enterprises of the same type; and (2) after dissolution and cancellation of Shanghai Logistics, it can effectively reduce fixed expenses such as enterprise site leasing and repetitive job labor costs without affecting the overall business development of the Group.

In summary, the board of directors believes that voluntary liquidation is in the overall best interests of the company and its shareholders, and will not have a significant adverse impact on the financial performance and operation of the Group.