CDV Holdings announced a major and connected transaction to withdraw from its 31.47% stake in Beijing Meishe Network Technology through a targeted capital reduction.

The company’s wholly owned subsidiary, Xinaote (Beijing) Video Technology (CDV BJ), signed a Capital Reduction Agreement on 19 Jan 2026 with Beijing Meishe and the other joint-venture partners. Under the deal, Beijing Meishe will cut its registered capital from RMB 31.78 million to RMB 15.00 million and pay RMB 30.00 million in cash to six exiting shareholders, including RMB 30.00 million to CDV BJ, in exchange for cancelling their entire equity interests.

Upon completion, CDV Holdings will cease to hold any equity in the joint venture. The board expects to book an estimated gain of about RMB 20.00 million, calculated as the difference between the consideration and the carrying value of the investment.

An independent valuer valued CDV BJ’s 31.47% stake at RMB 24.04 million as of 31 Dec 2025, indicating the agreed consideration represents an annualised return of roughly 25% on CDV BJ’s original RMB 10.00 million investment made in 2017.

Use of proceeds: 50% for core-business procurement, 35% for bank-debt repayment, and 15% for staff costs.

Board approval has been obtained; shareholder approval is still required. An extraordinary general meeting is scheduled for 13 Apr 2026 in Beijing. Executive Director Guo Langhua, who holds 6.68% of CDV Investment (one of the remaining JV parties), will abstain from voting along with his associates.

Beijing Meishe’s audited net assets fell from RMB 44.16 million at end-2023 to RMB 38.08 million at end-2024, recording losses for five consecutive years. Most conditions precedent to the capital reduction have been fulfilled; the deal will close within 15 business days after all conditions, including shareholder approval, are met.