New York, USA, Dec. 05, 2025 (GLOBE NEWSWIRE) -- Webus International Limited (“Webus” or the “Company”) provides the following clarification regarding a press release on October 21, 2025, titled "Webus International Limited to Expand Wetour's Expedia TAAP Partnership with Integration of Expedia Group's Newly Announced AI Trip Planner and APIs." (the “Press Release”): The Press Release contains inaccurate descriptions of the scope of Webus’ relationship with Expedia Group, which Webus now seeks to clarify as ...

VIE Structure and Regulatory Risks - The company operates through a VIE structure, holding 50% equity interests in Youba Tech, which allows for consolidation of financial results under U.S. GAAP despite not having full ownership[31]. - The VIE structure poses risks, including potential disallowance by the PRC government, which could materially affect operations and cash flow[47]. - There are significant uncertainties regarding the enforceability of the VIE structure under current and future PRC laws, which could materially affect the company's financial condition and operations[70]. - The company operates as a holding entity incorporated in the Cayman Islands, relying on its wholly-owned subsidiary Wetour in the U.S. and contractual arrangements with Youba Tech for operations in China[70]. - The company relies on dividends from its WFOE to fund cash requirements, and any limitations on these dividends could adversely affect its ability to distribute cash to shareholders[73]. - The company holds 50% equity interests in the VIE due to PRC restrictions on foreign ownership in value-added telecommunications, relying on contractual arrangements for operational control[156]. - Conflicts of interest may arise between the VIE's shareholders and the company, potentially affecting business operations and contractual obligations[159]. - The VIE generates most of its revenue in Renminbi, which is not freely convertible, potentially limiting the ability to pay dividends due to currency exchange restrictions[152]. - The PRC government imposes controls on the conversion of RMB into foreign currencies, affecting the transfer of funds and assets among Webus and its subsidiaries[192]. - The Foreign Investment Law, effective from January 1, 2020, does not explicitly recognize contractual arrangements as a form of foreign investment, leading to uncertainties regarding compliance and future regulations[166]. Financial Performance and Cash Flow - For the year ended June 30, 2023, revenues were RMB 154,226,006, which decreased to RMB 35,593,055 in 2025, representing a decline of approximately 77%[53]. - The net loss for the year ended June 30, 2025, was RMB 12,483,047, compared to a net loss of RMB 17,630,834 in 2023, indicating an improvement of about 29%[53]. - Operating expenses increased from RMB 27,452,452 in 2023 to RMB 19,273,589 in 2025, reflecting a decrease of approximately 30%[53]. - Cash and cash equivalents at the end of June 30, 2025, were RMB 11,351,952, up from RMB 2,151,180 at the end of June 30, 2023, marking an increase of about 427%[56]. - Total current assets increased significantly from RMB 10,911,146 in 2024 to RMB 56,927,375 in 2025, representing a growth of approximately 420%[57]. - Total shareholders' equity rose from RMB 27,807,737 in 2024 to RMB 56,822,587 in 2025, an increase of about 104%[57]. - The company reported net cash used in operating activities of RMB 58,731,377 for the year ended June 30, 2025, compared to net cash provided by operating activities of RMB 55,031 in 2024[56]. - The company incurred net losses for the years ended June 30, 2023, 2024, and 2025[69]. - The net cash used in operating activities for the year ended June 30, 2024, was RMB 55,031[63]. - The net cash used in investing activities for the same period was RMB (1,045,640)[63]. Revenue Concentration and Customer Risks - The company has a substantial customer concentration, with a limited number of customers accounting for a significant portion of revenues[69]. - Approximately 43% of total revenues for the year ended June 30, 2023, were derived from the top 10 customers, while for 2024 and 2025, this concentration decreased to approximately 32% and 20% respectively[101]. - The company has significant reliance on a limited number of major customers, which poses risks to revenue stability and financial performance[104]. Operational Challenges and Market Conditions - The COVID-19 pandemic significantly disrupted the company's operations, leading to a decline in commute and travel demand, resulting in substantial user cancellations and refund requests[79]. - Following the modification of China's zero-COVID policy, the company has seen a strong recovery in its business, although uncertainties remain regarding the full recovery of the overseas tourism market[80]. - The trend of remote working may reduce the demand for the company's commuter shuttle and chartered bus services, posing a risk to business operations[132]. - Newly developed public transportation infrastructure in China may decrease demand for the company's services, as public transport options expand[133]. - The ongoing Russian-Ukrainian War has led to increased volatility in oil and natural gas prices, which may adversely affect operational costs and cash flows[110]. Regulatory Compliance and Legal Risks - The approval of the CSRC or other PRC governmental authorities may be required for future financing activities, creating uncertainty for the company[74]. - The Holding Foreign Companies Accountable Act may impose regulatory risks and restrictions on the company due to its operations in mainland China, potentially affecting the value of its ordinary shares[78]. - The PRC legal system's evolving nature poses risks related to the interpretation and enforcement of laws, which could adversely impact the company's operations and shareholder value[73]. - The PRC government may impose new licensing or approval requirements that could hinder the Company's ability to operate effectively in the future[176]. - The PRC tax authorities may scrutinize the Company's contractual arrangements, leading to potential tax liabilities and penalties that could adversely affect financial results[169]. - The PRC government may impose stricter regulations on overseas offerings and foreign investments, potentially hindering Webus' ability to offer securities and affecting the value of its shares[185]. Employee and Management Risks - The company expects labor costs, including wages and employee benefits, to continue increasing, which may adversely affect financial condition and results of operations if these costs cannot be passed on to customers[109]. - The company may face challenges in retaining key management personnel, which could disrupt business operations and growth[118]. - The company faces intense competition for skilled employees, which may hinder its ability to attract and retain qualified personnel necessary for business support[124]. - Significant investments in employee training increase their value to competitors, leading to potential high costs in hiring and training replacements if retention fails[125]. Internal Controls and Financial Reporting - The company identified two material weaknesses in its internal control over financial reporting as of June 30 for the years 2023, 2024, and 2025, which could lead to material misstatements in financial statements[129]. - The company must comply with Section 404 of the Sarbanes-Oxley Act of 2002, requiring effective internal control over financial reporting, which may strain management and operational resources[128]. Data Security and Cybersecurity Regulations - User data from the US subsidiary is not subject to PRC data security regulations, while data from the PRC subsidiary is subject to these regulations[226]. - Outbound Data Transfer Measures require security assessments for transferring important data and personal information abroad[227]. - The CAC promulgated the Measures for the Standard Contract for Outbound Transfer of Personal Information, effective June 1, 2023[228]. - Personal information handlers must meet specific conditions to transfer data abroad, including not being a critical information infrastructure operator[228].

Core Insights - Webus International Limited announced the integration of Expedia Group's AI-powered Trip Planner and B2B APIs into its Wetour platform to enhance hotel booking efficiency and personalization for travelers [1][2][3] Group 1: Company Overview - Webus International Limited (NASDAQ: WETO) is a global TravelTech company that provides AI-driven customized travel and digital mobility solutions [4] - The company operates through its flagship brand Wetour Travel Tech LLC and regional subsidiaries, offering premium chauffeur services, personalized itineraries, and blockchain-enabled travel products across North America, Asia, and the Middle East [4] Group 2: Partnership and Technology Integration - Wetour is an authorized partner of Expedia Group's Travel Agent Affiliate Program (TAAP), which has supported its hotel booking business [1][3] - The integration of Expedia's new AI tools, including Smart Trip AI™, aims to improve search accuracy and streamline hotel bookings for Wetour's global users [2][3] - Wetour is currently conducting preliminary technical evaluations in preparation for the phased integration of these new features once they are fully launched to TAAP partners [3]

Core Insights - Webus International Limited has launched an AI-powered points optimization platform utilizing OpenAI's AgentKit framework, enhancing its Travel Tech ecosystem [1][3] - The platform features a "Loyalty Agent" that analyzes users' reward portfolios and recommends optimal redemption strategies, aiming to maximize reward value and reduce unredeemed points [2][3] - The global loyalty and rewards market exceeds US $20 billion annually, with nearly 30% of points remaining unredeemed, highlighting a significant opportunity for Webus's AI system to address this inefficiency [3] Company Overview - Webus International Limited (NASDAQ: WETO) is a global TravelTech company offering AI-driven travel and digital mobility solutions for both Chinese and international travelers [5] - The company provides services such as premium chauffeur services, personalized itineraries, and blockchain-enabled travel products across North America, Asia, and the Middle East [5] Future Plans - The platform is currently in internal beta testing with select users and partners, focusing on refining algorithms and user experience before a full public rollout [3][4]

Core Insights - Webus International Limited plans to establish a tokenized travel reward exchange platform that integrates XRP stablecoin settlement to enhance cross-border reward redemption and value conversion in the loyalty industry [1][2][3] - The initiative targets the $20+ billion global loyalty management market, aiming to improve liquidity, transparency, and interoperability among various reward ecosystems [2][3] - The CEO of Webus emphasizes the fragmentation of the global loyalty market and the goal to create a unified, tokenized reward exchange that simplifies global redemption and provides real-time, low-cost value conversion [3] Industry Overview - The global loyalty management market is valued at over $20 billion, indicating significant growth potential for innovative solutions in this sector [2] - The integration of blockchain technology and stablecoin settlement is expected to enhance the efficiency and effectiveness of reward systems across airlines, hotels, and mobility services [2][3] - Webus is currently evaluating pilot programs with travel partners in North America and Asia, with plans for broader rollouts as market adoption increases [3]

Core Insights - Webus International Limited (WETO) is establishing its global headquarters in the United States to enhance its innovation and capital market access [1][3] - The new headquarters will focus on attracting talent, expanding R&D, and advancing blockchain applications in the travel industry [2][4] - The company aims to integrate AI-powered agents into its travel services for personalized experiences and improved automation [2][3] Company Overview - Webus International Limited is a provider of AI-driven premium chauffeur services, curated travel, and blockchain-enabled booking solutions under the Wetour brand [4] - The company's mission is to redefine mobility and travel services through technology integration, personalization, and innovative financial infrastructure [4]

Core Viewpoint - Webus International Limited clarifies its previous announcement regarding a partnership with Air China, emphasizing that the cooperation is limited to a specific agreement for discounted chauffeur services at Hangzhou Xiaoshan International Airport for Air China passengers [1][2][3] Summary by Sections Agreement Details - On August 19, 2025, Webus's subsidiary, Zhejiang Youba Technology Co., Ltd., signed a Preferential Cooperation Agreement with Air China's Hangzhou Branch Office, focusing solely on discounted Wetour-brand chauffeur and transfer services for passengers with valid Air China ticket numbers starting with 999 [2] Clarification of Terms - The term "strategic partnership" used in the prior release was not meant to imply any broader cooperation beyond the specific arrangement detailed in the agreement [3]

Partnerships & Expansion - Webus International ($WETO) partners with Air China to offer services to over 60 million PhoenixMiles members [1] Cryptocurrency & Blockchain Integration - Webus plans to integrate XRP and RLUSD payments into its Wetour platform [1] - The integration aims to enable faster settlements, tokenized rewards, and blockchain-enabled vouchers linked to loyalty benefits [1] - The integration is pending regulatory approval [1] Company Strategy - Webus International recently launched an XRP treasury strategy [1]

Core Insights - Webus International Limited has entered a strategic partnership with Air China, enhancing its service offerings to over 60 million PhoenixMiles members globally [1][2] - The partnership allows Webus's travel service brand, Wetour, to provide premium chauffeur services and airport transfers to Air China's passengers [2] - Wetour plans to integrate XRP payment support for PhoenixMiles members, facilitating faster settlements and tokenized rewards, marking a significant step towards a Web3 travel ecosystem [3] Company Overview - Webus International Limited specializes in AI-driven mobility solutions, focusing on premium, customizable chauffeur services for travelers worldwide [4] - The flagship brand Wetour offers a range of services including global airport transfers, intercity transportation, private guided tours, and luxury-chartered services [5]

Core Viewpoint - Microbus (WETO) has experienced a stock price increase of 2.39%, reaching $2.14 per share, with a total market capitalization of $47.08 million as of August 25 [1] Financial Performance - As of December 31, 2024, Microbus reported total revenue of 17.38 million RMB, a year-on-year decrease of 28.48% [1] - The company recorded a net profit attributable to shareholders of -2.84 million RMB, which represents a year-on-year increase of 33.01% [1] Business Model and Operations - Microbus International Limited is developing a comprehensive service platform for the global customized charter bus industry, leveraging digital technology to enhance operational efficiency across various service aspects, including pricing, demand management, dispatching, service supervision, financial settlement, and fleet management [1] - The platform allows users to book various services such as business travel charters, commuter buses for large clients, short-distance trips, intercity routes, and global Chinese charter services, catering to a diverse range of travel needs with vehicle options from 5 to 55 seats [1] - The company aims to facilitate the upgrade of the global shared travel industry by creating a "data + platform + algorithm + operation" model, providing safe, efficient, intelligent, and diverse travel service scenarios for customers [1]