LONGCHEER to Acquire 60% Stake in Two Precision Metal Companies for 540 Million Yuan

LONGCHEER (09611) has announced the signing of share transfer agreements on March 30, 2026, with sellers Mr. Wu Yutao, Mr. Xiong Daoan, and Suzhou Anjie Capital. The company will acquire a total of 60% equity in the target companies, namely Kejuncheng Precision Technology (Dongguan) Co., Ltd. and Dongguan Jiya Metal Products Co., Ltd., for a total consideration of 540 million yuan. The company anticipates that the products and technologies of the target companies align with its overall development strategy. LONGCHEER focuses on ODM manufacturing for smart products, providing brand clients in the consumer electronics industry and other sectors with one-stop services from research and design to production. The target companies are high-tech enterprises specializing in high-precision metal etching technology, primarily offering precision metal processing solutions such as metal etching, laser cutting, and stamping to clients in the consumer electronics industry. The thermal management modules and related structural components produced by the target companies, including VC (Vapor-Chamber) heat spreaders and precision metal parts, can be applied in LONGCHEER's ODM manufacturing processes. The company expects the acquisition to enhance its market penetration in areas such as smartphones and tablets and to generate synergies with its existing business. Leveraging the target companies' expertise in metal etching, the group will be better positioned to strengthen its technological capabilities and enhance its value proposition in the integrated design and manufacturing ODM industry. Consequently, the company believes that proceeding with the acquisition is in the overall interests of the company and its shareholders.