Webus International Issues Clarification on Prior Announcement Regarding Cooperation with Air China
Rhea-AI Summary
Webus International (NASDAQ: WETO) has issued a clarification regarding its previously announced cooperation with Air China. The company revealed that the actual agreement, signed on August 19, 2025, is limited to a Preferential Cooperation Agreement between its PRC subsidiary, Zhejiang Youba Technology Co., Ltd., and Air China's Hangzhou Branch Office.
The agreement specifically covers discounted Wetour-brand chauffeur and transfer services at Hangzhou Xiaoshan International Airport, exclusively for passengers with valid Air China tickets (beginning with 999). This clarification aims to correct any misunderstandings from the previous announcement's reference to a "strategic partnership," as there is no broader cooperation with Air China beyond this specific arrangement.
Positive
- None.
Negative
- Previous announcement potentially misled investors about the scope of Air China partnership
- Partnership is limited to only local airport transfer services in Hangzhou, not a broader strategic alliance
Insights
Webus significantly downgrades previously announced "strategic partnership" with Air China to just a limited airport service deal at one location.
This clarification represents a substantial downgrade from Webus International's earlier announcement. What was previously characterized as a "strategic partnership" with Air China is now revealed to be merely a limited arrangement for discounted chauffeur services at a single airport location - Hangzhou Xiaoshan International Airport. The cooperation is further restricted to only passengers holding specific Air China ticket numbers.
The language in this release is carefully crafted damage control. By acknowledging that prior wording "may have led to misunderstandings," the company is essentially admitting to overstatement in its previous communication. This raises questions about Webus's disclosure practices and potentially its corporate governance standards.
The timing is also noteworthy - the original announcement came on August 19, yet this clarification comes more than three weeks later. This delay in correcting potentially market-moving information is problematic from a disclosure perspective. The original announcement likely generated investor enthusiasm about expanded business opportunities that now appears unwarranted.
This type of correction suggests the company may have been attempting to leverage the Air China name and reputation for market impact beyond what the actual business arrangement justified. Investors should view this clarification as a significant negative signal regarding management's communication practices and potentially their business development capabilities.
HANGZHOU, China, Sept. 10, 2025 (GLOBE NEWSWIRE) -- Webus International Limited (NASDAQ: WETO) (“Webus” or the “Company”), a leading provider of premium mobility and travel services worldwide, today issued the following clarification regarding its prior press release titled “WETO Signs Strategic Partnership with Air China.”
The Company acknowledges that the wording of its prior announcement may have led to misunderstandings and wishes to further clarify the cooperation in order to correct any confusion or inconvenience this may have caused investors or partners.
To clarify: On August 19, 2025, the Company’s wholly owned PRC subsidiary, Zhejiang Youba Technology Co., Ltd., entered into a Preferential Cooperation Agreement on Airport Pick-up/Drop-off Services for Air China Passengers with Air China’s Hangzhou Branch Office (the “Agreement”). The scope of this Agreement is limited solely to offering passengers holding valid Air China ticket numbers (beginning with 999) discounted Wetour-brand chauffeur and transfer services at Hangzhou Xiaoshan International Airport. The Company has no broader cooperation with Air China or any other branch offices beyond this specific arrangement.
References in the prior release to a “strategic partnership” were not intended to suggest a broader cooperation outside of the scope described above.
Forward-Looking Statements
This press release may contain forward-looking statements, including, among others, statements regarding the Company’s future business development plans, potential partnership opportunities, and anticipated benefits of the cooperation with Air China. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those expressed or implied. These risks and uncertainties include, but are not limited to, changes in market conditions, regulatory developments, technology integration timelines, and business execution. Additional risks are discussed in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), available at www.sec.gov. The Company undertakes no obligation to update or revise forward-looking statements to reflect subsequent events or circumstances, except as required by law. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any security or digital asset.
Investor Relations Contact:
Annabelle Li
Investor Relations – Webus International Limited
Email: ir.annabelle@webus.vip
FAQ
What is the actual scope of Webus International's (WETO) agreement with Air China?
When did Webus International (WETO) sign the agreement with Air China's Hangzhou Branch?
Why did Webus International (WETO) issue this clarification about the Air China partnership?
Which subsidiary of Webus International (WETO) is involved in the Air China agreement?
