HOLLWIN URBAN SERVICE announced that on April 17, 2026, following trading hours, the company entered into a share acquisition agreement with the transferor, Chengfa Group Company, and individual shareholders. The company intends to acquire 100% of the equity in the target company, Hunan Liwei Zhongtian Technology Development Co., Ltd., for a consideration of RMB 49.5435 million. The specific terms and conditions are outlined in the share acquisition agreement. Upon completion, the target company will become a wholly-owned subsidiary of HOLLWIN URBAN, and its financial results will be consolidated into the company's financial statements.
The target company is primarily engaged in software and information technology services, including: (i) the design, construction, operation, and maintenance of intelligent systems engineering; (ii) the construction and operation of smart cities; and (iii) smart system integration and software research and development. Its main focus areas are: (i) smart city construction and operation; (ii) urban and road lighting engineering; (iii) mechanical and electrical engineering; (iv) smart system integration, operation, and management; (v) the research, development, and operation of software systems; and (vi) collaborative innovation projects involving industry, academia, and research.
The Board of Directors believes the acquisition aligns with the overall interests of the company and its shareholders for several key reasons. The acquisition represents a strategic optimization of resource allocation within the state-owned assets framework. Following the acquisition, the target company will become a wholly-owned subsidiary. This comprehensive integration removes previous structural limitations, enabling the company to better undertake and execute larger-scale, higher-value projects. This strategic consolidation directly enhances the company's financial scale and operational capabilities, solidifies its market leadership and competitive advantage, promotes sustainable growth, and increases long-term shareholder value.
As the property management industry shifts towards technology-driven, qualification-oriented services, technological strength has become a core indicator of long-term competitiveness. The acquisition is a significant step in advancing the company's strategy of "technology-driven intelligent transformation," aimed at improving operational efficiency and service delivery capabilities. The target company possesses a mature portfolio of solutions in the smart city sector, offering services such as information integration and the development and operation of smart city applications. Its integrated solutions cover key urban areas including intelligent transportation, smart industrial parks, and smart education, and it has substantial experience in software platforms and intelligent systems. This expertise will complement HOLLWIN URBAN's existing strengths, meet specific technological and qualification requirements, reinforce its position as a leading regional and nationally first-class comprehensive urban service operator, and enhance its ability to leverage the advantages of a local state-owned enterprise.
As the company seeks to expand its business boundaries, this strategic acquisition is expected to enhance profitability and diversify revenue streams. The integration of the target company's business is anticipated to strengthen capital market recognition of the company's positioning as a "full-chain urban service provider" and attract investor interest in its long-term growth prospects. The Board believes this may lead to a positive reassessment of the company's profitability and growth potential.
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