Ke Hua Heng Sheng extends projects, adds entity, divests subsidiary

Ke Hua Heng Sheng has extended the completion dates for three fundraising investment projects – Intelligent Manufacturing Base (Phase I), Ke Hua R&D Center, and Ke Hua Digital Enterprise – to December 31, 2028. The company is also adding its wholly-owned subsidiary, Zhangzhou Kehua Electric Technology Co., Ltd. ("Zhangzhou Electric"), as a co-implementation entity for the Intelligent Manufacturing Base project, and expanding the project’s location to Zhangzhou, Fujian Province.

Concurrently, the company announced the sale of its wholly-owned subsidiary, Zhangzhou Kehua Technology Co., Ltd., including its 100% equity and related intangible assets, to its controlling shareholder, Xiamen Kehua Weiye Co., Ltd., for RMB 26,108,700. This divestment aims to optimize asset allocation and enhance the company's sustainable operational capabilities, with the proceeds intended for working capital and daily operations.

These decisions, approved by the board on November 28, 2025, are based on project progress, market conditions, and the company’s strategic goals, aiming to improve efficiency and focus on its core businesses.