Galaxy Magnets to acquire Kyoto Longtai, boost magnetic materials business

Chengdu Galaxy Magnets is set to acquire 100% equity in Sichuan Kyoto Longtai Technology Co., Ltd. through a combination of share issuance and cash payments, alongside a private placement of supporting funds to no more than 35 specific investors. The acquisition will integrate Kyoto Longtai, a permanent magnet ferrite materials manufacturer, into Galaxy Magnets' operations, aiming to diversify its product portfolio and strengthen its position in the automotive sector, particularly in new energy vehicles. The preliminary estimated valuation for Kyoto Longtai is approximately 450 million yuan.

The transaction, which does not constitute a major asset reorganization or a back-door listing and will not alter Galaxy Magnets' control, is currently pending audit and valuation of Kyoto Longtai's assets. The final transaction price and the number of shares to be issued will be determined through negotiations based on the valuation results. The share issuance price for the acquisition is set at 23.15 yuan per share, 80% of the average stock trading price over the 120 trading days prior to the pricing reference date.

Trading of Chengdu Galaxy Magnets shares, which was suspended on September 15, 2025, in anticipation of this major asset reorganization, is scheduled to resume on September 29, 2025. This acquisition aligns with national policies encouraging mergers and acquisitions for industrial upgrading and improved quality of listed companies.