Changhong Jiahua plans privatization at significant premium

Hongtu Investment Co., Limited (the offeror) has proposed the privatization of Changhong Jiahua Holdings Limited via a scheme of arrangement, which will lead to the withdrawal of its listing on the Stock Exchange. The scheme consideration price is HK$1.223 per scheme share, valuing the scheme shares at an aggregate of HK$709,342,446. This represents a premium of approximately 32.93% over the last trading day's closing price of HK$0.920.

The offeror has affirmed it will not increase the scheme consideration price. The proposal is subject to several pre-conditions, including necessary approvals from Chinese authorities such as Mianyang City SASAC and Sichuan Provincial Development and Reform Commission, expected to be satisfied within two to five months.

Following the scheme's effectiveness, the company's issued ordinary shares will be owned approximately 59.03% by Fit Generation, 39.87% by the offeror, and 1.10% by Changhong Hong Kong. Trading in ordinary shares on the Stock Exchange, halted since September 12, 2025, is scheduled to resume on September 23, 2025.