Raytron subsidiary sells loss-making assets in connected transaction

Raytron Technology's wholly-owned subsidiary, Shanghai Weiqi Investment Co., Ltd., is divesting its 65% equity in Yantai Ruici New Materials Technology Co., Ltd. The transaction involves selling 51% to Yantai Qichuang Xinyuan Technology Co., Ltd. for 17.0748 million yuan and 14% to Zhang Juxian for 4.6872 million yuan, totaling 21.762 million yuan. This move is part of Raytron's strategy to streamline its asset structure, reduce unprofitable units, and reallocate resources towards more profitable ventures. Post-sale, Ruici New Materials will no longer be consolidated into Raytron's financial statements.

The transaction is classified as a connected transaction due to common control by Raytron's actual controller, Ma Hong, over Yantai Qichuang, and Mr. Zhao Fangyan, Raytron's vice chairman and deputy general manager, serving as chairman of Ruici New Materials. The sale has been approved by Raytron's independent directors and board of directors, with related parties recusing themselves from voting, and does not require shareholder approval.

An appraisal by Beijing Tianyuan Open Asset Appraisal Co., Ltd. valued Ruici New Materials' total equity at 33.4864 million yuan as of August 31, 2025, representing a 29.64% increase. This valuation, based on the asset-based approach, formed the basis for the negotiated transaction price. Over the past 12 months, other connected transactions with Yantai Qichuang and its subsidiaries amounted to 5.22753189 million yuan.