Keli Sensing to boost stake in Huahong Technology to 96%

Keli Sensing Technology (Ningbo) plans to acquire an additional 45% equity in its controlling subsidiary, Fuzhou Huahong Intelligent Technology Co., Ltd. (Huahong Technology), from four minority shareholders for a total consideration of CNY 12,150 million. This transaction will increase Keli Sensing's direct ownership in Huahong Technology from 51% to 96%, maintaining the consolidated financial reporting scope.

The acquisition involves purchasing 19,125,000 shares of Huahong Technology. The valuation for Huahong Technology was set at CNY 270,000,000.00 as of the contract signing date, equivalent to CNY 6.35 per share. The transaction is funded by Keli Sensing’s own capital and is not expected to materially impact the company’s existing core business, ongoing operational capabilities, or cash flow.

The acquisition is subject to a no-objection letter from the National Equities Exchange and Quotations System. The agreement outlines a phased payment structure, with the first installment for 38.10% equity (16,192,756 shares) totaling CNY 102,871,626.35, and a second installment for 6.90% equity (2,932,244 shares) totaling CNY 18,628,373.65 to be paid after the resignation of Chen Chunjiang from Huahong Technology's board and management.