Yango Group released an announcement revealing that its majority-owned subsidiary, Shenzhen Yango Jinhui Technology Co., Ltd. (hereinafter referred to as "Yango Jinhui"), has entered into a "Product Cooperation and Sales Agreement" with Company A. Under the terms of this agreement, Yango Jinhui is set to purchase servers and related equipment from Company A in multiple installments. This procurement will commence within 90 days following the delivery of the initial batch of goods, with the cumulative contract value set at a minimum of RMB 2.2931 billion (inclusive of taxes).
To put this into perspective, the contract amount represents a substantial 51.22% of Yango Group's total assets as per its latest audited financial statements. Should the transaction be executed as planned, Yango Group's asset base will undergo a significant expansion. However, this growth will be accompanied by a notable surge in procurement financing costs, which is expected to exert a considerable influence on the company's overall financial standing.