Pinggao Electric acquires key technologies from controlling shareholder

Henan Pinggao Electric Co., Ltd. will acquire ten intangible assets, including critical technologies for ultra-high voltage DC wall bushings, from Pinggao Group Co., Ltd., its controlling shareholder, for CNY94.2049m (tax inclusive). This related-party transaction, approved by the board on December 26, 2025, is based on an appraisal report by Beijing Tianjian Xingye Assets Appraisal Co., Ltd. It is not subject to shareholder approval as it represents less than 5% of the company's net assets.

The acquired assets, comprising both capitalized and expensed R&D projects, had an original cost of CNY81.0029914m and a net book value of CNY29.82813146m as of the September 30, 2025, appraisal benchmark date. The transaction is expected to strengthen Pinggao Electric's technological foundation, support product development, and enhance market competitiveness, contributing to the company's sustained growth. The payment will be made in two installments: 80% upon invoice issuance and 20% after the transfer of technical documentation and patent rights.

Additionally, Henan Pinggao Electric completed changes to its business scope, approved by the board and shareholders in November and December 2025, respectively. The company updated its industrial and commercial registration and obtained a new business license with a standardized scope of operations, reflecting its evolving business strategy.