JOYSON ELEC to Boost Stake in Anhui Joyson to 69.54% via RMB2.52 Billion Connected Deal

Bulletin Express03-23

On 23 March 2026, JOYSON ELEC signed an Equity Transfer Agreement with Future Industry Investment Fund (Industry Fund) to acquire a 12.42% stake in Anhui Joyson for RMB2.52 billion.

Prior to the transaction, JOYSON ELEC held 57.12% of Anhui Joyson’s registered capital; Industry Fund held 12.42%. Completion will raise JOYSON ELEC’s holding to 69.54%, while Industry Fund will exit entirely. Anhui Joyson will remain a consolidated subsidiary.

Payment will be split into two tranches: • RMB1.52 billion due by 31 March 2026 for 7.49% equity. • RMB1.00 billion due by 31 December 2026 for the remaining 4.94%. Shareholder rights attached to each tranche transfer once the corresponding payment is settled; Industry Fund retains disposal rights over any unpaid portion.

The RMB2.52 billion price was negotiated with reference to: • An independent market-approach valuation (Pan-China Enterprise Consulting), which placed a 100% equity value for Anhui Joyson at RMB19.67 billion–RMB22.59 billion as of 31 March 2025. • A January 2026 capital injection, where ABC Investment paid RMB1.00 billion for a 4.81% stake.

Operating performance of Anhui Joyson has improved markedly: revenue rose from RMB33.50 billion in 2022 to RMB37.60 billion in 2024, while net profit swung from a RMB0.47 billion loss to a RMB0.70 billion profit. Net assets stood at RMB10.34 billion on 30 September 2025.

The Board views the deal as beneficial for enhancing control and management efficiency over the automotive-safety platform. The transaction qualifies as a discloseable and connected transaction under the Hong Kong Listing Rules but is exempt from circular and independent shareholder approval requirements.

Funding will come from internal resources and bank loans. Completion remains subject to customary conditions precedent; shareholders and potential investors are advised to exercise caution when dealing in JOYSON ELEC securities.

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