Boqii Holding shares surge 14.0% premarket after announcing $1.76M repurchase of 14.5% stake in Nanjing Xingmu Biotechnology and VIE termination.

Boqii Holding surged 14.0% in premarket trading following an announcement to repurchase a 14.5% equity interest in Nanjing Xingmu Biotechnology for RMB 12.5 million. The transaction, split into installments, aims to streamline operations and enhance capital efficiency, while the termination of VIE arrangements is expected to simplify financial reporting and reduce regulatory risks. These strategic moves signal management’s confidence in optimizing the company’s structure, likely driving investor optimism about improved earnings potential and long-term value creation. The premarket rally reflects market anticipation of these structural benefits, aligning with the stock’s upward trajectory amid broader sector volatility.