IKD completes asset transfer for acquisition and capital raising

Zhejiang Tiance Law Firm confirmed the completion of the asset transfer for IKD's acquisition of 71% equity in Zorlbo Precision Electromechanical Co., Ltd. The transfer received approval from the China Securities Regulatory Commission (CSRC) on September 10, 2025. As of September 24, 2025, the relevant industrial and commercial change registration procedures for Zorlbo's equity have been finalized, making Zorlbo a controlled subsidiary of IKD.

IKD’s acquisition involves issuing shares and paying cash to acquire assets, alongside raising supporting funds. The transaction is valued at 1.118bn yuan, with Zorlbo's 100% equity estimated at 1.575bn yuan. The total consideration for the 71% equity includes 503.2m yuan in cash and 615m yuan in shares, with 44,893,247 new shares issued at 13.70 yuan per share after a dividend adjustment.

The transaction's subsequent steps include IKD issuing shares to transaction counterparts, applying for new share registration and listing with the Shanghai Stock Exchange, paying the cash portion of the consideration, and raising up to 520m yuan in supporting funds from no more than 35 specific investors. The independent financial advisor, Sinolink Securities Co., Ltd., confirmed the legality and effectiveness of the asset transfer, noting no substantial legal obstacles for the remaining procedures.