Yeebo (International Holdings) Limited Announces Discloseable Transaction: Disposal of Nantong Jianghai Shares

Key Highlights for Investors

• Significant Asset Disposal: Yeebo (International Holdings) Limited (“Yeebo” or the “Company”) has announced that its wholly-owned subsidiary, Billion Power Investment Limited, has disposed of 9,902,000 shares in Nantong Jianghai Capacitor Company Ltd. (“Nantong Jianghai”), representing 1.16% of Nantong Jianghai’s issued share capital.
• Transaction Value: The total consideration for the disposed shares amounts to RMB278,046,800 (approximately HK\$313.78 million), with an average selling price of RMB28.08 per share, excluding transaction costs.
• Post-Disposal Stake: Following the transaction, Yeebo, through Billion Power, continues to hold 107,540,410 Nantong Jianghai shares (12.64% of the issued share capital).
• Open Market Disposal: The transaction was executed through a series of on-market transactions on the Shenzhen Stock Exchange. Yeebo is not aware of the identities of the purchasers, nor whether any are connected persons under Hong Kong Listing Rules.

Financial Impact and Use of Proceeds

• Estimated Gain: The Company estimates an unaudited gain (before taxation) of approximately HK\$76 million from the disposal, calculated as the difference between the net consideration received and the carrying value of the disposed shares as at 31 March 2025.
• Use of Proceeds: The net cash proceeds will be applied towards the repayment of bank loans, general working capital, and business development for the Group.
• Accounting Treatment: Nantong Jianghai does not constitute an associate of Yeebo immediately before the disposal. The remaining shares will continue to be measured at fair value through profit or loss in Yeebo’s consolidated financial statements.
• Audit Note: The final gain or loss to be recorded in the financial statements for the year ending 31 March 2026 may differ from the current estimate, subject to audit.

Background on Nantong Jianghai

• Nantong Jianghai is listed on the Shenzhen Stock Exchange (stock code: 002484) and is principally engaged in the manufacturing and trading of aluminium electrolytic capacitors, thin film capacitors, and super capacitors.
• Financial Performance:
  • Profit before taxation for FY2023: RMB823.73 million
  • Profit after taxation for FY2023: RMB710.45 million
  • Profit before taxation for FY2024: RMB741.57 million
  • Profit after taxation for FY2024: RMB660.34 million
  • As of 30 September 2025: Total assets of RMB8,782.23 million; net assets of RMB6,210.03 million; net assets attributable to shareholders of RMB6,137.77 million.
• Yeebo has invested in Nantong Jianghai since 2005 and has seen significant growth in the business, which became independently listed in 2010.

Strategic Rationale for the Disposal

• The Company undertakes strategic reviews of its investments and, considering the recent performance of Nantong Jianghai shares, views this as an opportune moment to realize part of its investment.
• The disposal allows Yeebo to unlock value and redeploy capital to support ongoing business development and strengthen its financial position.
• The Board believes that the disposal is fair, reasonable, and in the interests of both the Company and its shareholders.

Listing Rules Implications and Potential Share Price Sensitivity

• The disposal constitutes a discloseable transaction under Chapter 14 of the Hong Kong Listing Rules, as one or more applicable percentage ratios exceed 5% but are less than 25%.
• The transaction is subject to notification and announcement requirements under the Listing Rules.
• Potential Price-Sensitive Impact: The significant gain, strengthened liquidity, and redeployment of resources could positively influence investor sentiment and potentially impact Yeebo’s share price. However, the market’s actual response will depend on broader conditions and investor interpretation of the Company’s future strategy.
• Should the Company become aware that any purchaser is a connected person, it will comply with all applicable Listing Rules and update shareholders accordingly.

Board Composition

• The board comprises Executive Directors: Mr. Fang Yan Tak, Douglas; Mr. Li Kwok Wai, Frankie; Mr. Leung Tze Kuen; and Mr. Cheung Wai Man. Independent Non-Executive Directors are Mr. Chu Chi Wai, Allan; Mr. Lau Yuen Sun, Adrian; and Professor Lau Kei May.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or an offer to sell or the solicitation of an offer to buy any securities. Investors should consult their own advisors and consider their own financial position before making any investment decisions. The actual impact of the transaction on the Company’s financial position and share price may differ from current estimates and is subject to audit and market conditions.

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