Boton Tech to transfer majority stake in R&D subsidiary

Wuxi Boton Technology announced it will transfer a 98% equity stake in its wholly-owned subsidiary, Wuxi Boton Technology R&D Co., Ltd. ("Boton R&D"), to Wuxi Xintie Machinery Co., Ltd. The transfer agreement, approved by Boton Tech's board, values Boton R&D at CNY 98 million. Following the transaction, Boton R&D will no longer be consolidated into Boton Tech's financial statements. The transaction is not considered a related party transaction or a major asset restructuring. Boton R&D's net asset value was assessed at CNY 10,005.60 million as of May 31, 2025, based on an asset appraisal report. The proceeds from the sale will be used for the company's daily production and operations. The completion of the transfer is targeted for October 31, 2025.