FIBOCOM Details Progress on 37.16% Cash Acquisition of Hangsheng Electronics to Secure 51.40% Voting Control

FIBOCOM (Fibocom Wireless Inc.) has released an update on its planned major asset reorganisation involving the cash purchase of a 37.16% equity stake in Shenzhen Hangsheng Electronics Co., Ltd. The transaction, first announced in March 2026, remains subject to shareholder and regulatory approvals, but several procedural milestones have been cleared.

Transaction Structure • FIBOCOM will acquire 119.02 million Hangsheng Electronics shares from 38 existing shareholders, representing 37.16% of the target’s outstanding equity, through a cash consideration (amount undisclosed in the filing). • By simultaneously entering an Acting-in-Concert Agreement, the company will control 51.40% of Hangsheng’s voting rights, positioning Hangsheng as a controlled subsidiary upon completion. • The deal qualifies as a “major asset reorganisation” under PRC regulations, yet involves no new share issuance and no ancillary fundraising.

Recent Milestones • Updated audit and stub-period financials have been completed to satisfy regulatory validity requirements. • On 18 August 2026, China’s State Administration for Market Regulation issued a “Decision on No Further Review of the Concentration of Undertakings,” removing a key antitrust hurdle. • All core transaction documents—Share Transfer Agreement, Acting-in-Concert Agreement, Performance Undertaking and Profit Compensation Agreement, and Maximum Amount Share Pledge Agreement—have been executed, subject to stipulated conditions precedent.

Next Steps and Remaining Conditions • The acquisition still requires approval at FIBOCOM’s shareholder meeting and any additional regulatory or filing procedures mandated by Chinese laws and listing rules. • Implementation timeline and ultimate completion remain uncertain; investors are urged to monitor subsequent disclosures for material developments.

Background of Disclosures Since the initial indicative announcement on 24 March 2026, FIBOCOM has issued seven progress announcements and two revised draft reports, most recently on 7 August 2026. Each filing has detailed potential risks, including market, integration and regulatory uncertainties.

Risk Reminder The company reiterates that the transaction’s consummation depends on outstanding approvals; there is no assurance on either timing or outcome.

FIBOCOM’s board affirms that all disclosed information is true, accurate and complete. Further updates will be released in accordance with applicable regulations.