BUTONG GROUP (06090) has announced that after trading hours on October 30, 2026, the company entered into a non-binding memorandum of understanding with an independent third party (the seller, who is the controlling shareholder of the target company) regarding the proposed acquisition of approximately 51% equity interest in Huizhou Longde Technology Co., Ltd., a company incorporated in China principally engaged in the research and development, production and sale of micro special motors.
Under the terms of the memorandum of understanding, the company is entitled to conduct due diligence with the full cooperation of the seller, and the seller has granted the company an exclusivity period of four months from the date of the memorandum of understanding. The proposed acquisition of the target company represents an important initiative for the group to implement its strategy of extending upward along the industry chain and upgrading its products with advanced technology.
The target company possesses a mature foundation in research and development, manufacturing and customer validation in the field of micro drive motors, and has a complete technical system for motors and drive control. Upon completion of the proposed acquisition (if materialized), the group will be able to achieve independent control over core motor components, optimize supply chain risks, accelerate the research and development and commercialization of smart parenting and home technology products, and consolidate its competitive advantages in the high-end market, which is conducive to the group's long-term development and the interests of shareholders.
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