Hong Kong–listed Butong Group announced that, after trading hours on 30 October 2026, it entered into a non-legally binding Memorandum of Understanding with an independent third-party vendor—controlling shareholder of Huizhou Longde Technology Co., Ltd.—to acquire approximately 51% of the target company’s equity. Huizhou Longde Technology is a mainland China-based specialist in the research, development, production and sales of micro-special motors.
Under the MOU, Butong Group is entitled to conduct comprehensive due diligence with full cooperation from the vendor. In addition, the vendor has granted the purchaser a four-month exclusivity period starting from the signing date, precluding negotiations with other potential buyers during this timeframe.
Management highlighted the transaction as a strategic move to extend Butong Group’s industrial chain upstream and advance technology-driven product upgrades. Ownership of Huizhou Longde Technology is expected to give the Group direct control over key motor components, reduce supply-chain risks and expedite the rollout of smart childcare and home-technology products, strengthening competitiveness in high-end market segments.
No definitive agreement has been executed. Should the parties proceed, the deal could constitute a notifiable transaction under Hong Kong Stock Exchange listing rules, and further announcements will be issued as required. The company cautioned shareholders and potential investors that the proposed acquisition remains subject to final agreement and may not ultimately materialise.
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