Zhitong Finance App News, Huawu Shares (300095.SZ) announced that the company reviewed and passed the “Proposal to Transfer Part or All of the Shares of the Holding Subsidiary Changsha Tianying Aviation Equipment Co., Ltd.”. The company plans to transfer part or all of the shares of the holding subsidiary, Changsha Tianying Aviation Equipment Co., Ltd. (“Changsha Tianying”). If the transaction is successfully completed, the company's shares in Changsha Tianying will be reduced or no longer held in the scope of the company's consolidated statements.

According to the announcement, Tianying in Changsha has continued to lose business performance in recent years due to poor management. Beginning in early 2023, business volume continued to decline, and construction was seriously inadequate. Since the beginning of the second half of the year, Tianying in Changsha has basically stagnated, but it has not been closed. Currently, the total amount of litigation and arbitration involving Changsha Tianying and its subsidiaries is approximately RMB 409.555 million, accounting for 1.80% of the latest audited net assets of listed companies.

In view of the current state of Changsha Tianying and the lack of new orders recently, in order to reduce the impact of loss-making subsidiaries on the company and protect the long-term interests of the company and shareholders, the company plans to transfer part or all of the shares in Changsha Tianying. The purpose of this equity transfer is to further focus on the company's main business, continuously optimize the existing asset structure, rationally allocate resources, and raise the company's profit level.