Fibocom Wireless Inc. (“Fibocom”) has confirmed the execution of its major asset purchase of Shenzhen Hangsheng Electronics Co., Ltd. (“Hangsheng Electronics”), acquiring 37.16% of the target’s shares for RMB1.43 billion. Following the deal—and an acting-in-concert agreement with existing Hangsheng shareholders—Fibocom and its concert parties will collectively hold 51.40% of Hangsheng Electronics, converting the automotive electronics specialist into a controlled subsidiary.
Key financial terms • Valuation: Independent valuer Shanghai Zhonghua Assets Appraisal pegged 100% of Hangsheng Electronics at RMB3.85 billion as of 31 December 2025. • Consideration: The agreed purchase price implies a full equity value of RMB3.84 billion, below the appraised valuation, safeguarding minority shareholders’ interests. • Initial payment: Fibocom has remitted 20% of the consideration, or RMB285.60 million; the remaining 80% will be settled after completion of share transfer formalities.
Strategic significance • Scale impact: Hangsheng Electronics’ 2025 revenue equalled 69.20% of Fibocom’s own turnover, meeting the 50% threshold that classifies the transaction as a major asset reorganisation under Chinese regulations. • Capital structure: The acquisition is fully cash-funded, with no new share issuance or fundraising, and does not alter Fibocom’s controlling shareholder or effective controller.
Implementation status • Asset transfer: 119,015,321 Hangsheng shares have been registered under Fibocom’s name, finalising delivery of the target assets. • Governance: Hangsheng completed a board and supervisory reshuffle; Yang Hong remains general manager, while Fibocom Chairman Zhang Tianyu has joined the target’s board. No management changes occurred at Fibocom. • Creditor relations: Hangsheng continues as an independent legal entity; its existing assets and liabilities remain unaffected by the transaction.
Regulatory and advisory confirmation • Approvals: The transaction has cleared Fibocom’s board, shareholder meeting, and all required PRC regulatory processes, including anti-monopoly review by the State Administration for Market Regulation. • Independent opinions: CITIC Securities, acting as independent financial adviser, and AllBright Law Offices, serving as legal counsel, affirmed the transaction’s compliance, the lawful completion of share transfer, and absence of material discrepancies or related-party issues.
Next steps Fibocom will complete the remaining consideration payments, finalize interim profit-sharing adjustments, and continue to disclose progress. All transaction parties are presently fulfilling contractual and undertaking obligations, with no legal impediments identified for outstanding matters.
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