PATEO CONNECT Technology (Shanghai) Corporation (PATEO) disclosed on 2 June 2026 that it has entered into a non-binding memorandum of understanding alongside Ping An Capital Co., Ltd. to acquire a controlling interest in an unnamed integrated-circuit design company in Mainland China.

The prospective transaction structure envisions PATEO (Purchaser 1) and Ping An Capital or an affiliated fund (Purchaser 2) purchasing a yet-to-be-determined number of shares from the existing shareholders (the Seller) for cash, thereby securing control of the target. Key commercial terms—including stake size, valuation basis, consideration, payment schedule and completion conditions—remain subject to negotiation and will be finalised in definitive agreements.

The target enterprise, operating under a Fabless model, specialises in high-speed optoelectronic chips, high-performance analogue chips and related modules used in AI data centres. Preliminary information indicates the business generated revenue of roughly RMB0.31 billion for the year ended 31 December 2025.

Management cited two strategic rationales for the planned acquisition: 1. Strengthening PATEO’s vertically integrated “software-hardware-chip-cloud” platform amid growing demand for high-bandwidth, low-latency solutions in intelligent cockpits and autonomous driving. 2. Leveraging the target’s customer base in high-performance computing to create synergies with PATEO’s existing in-vehicle operations and deepen its presence in vehicle-to-cloud data infrastructure.

The MOU is expressly non-binding except for clauses covering confidentiality, governing law and its own non-binding nature. If consummated, the deal may constitute a discloseable transaction under Chapter 14 of the Hong Kong Listing Rules, triggering further approvals and disclosures.

PATEO cautioned shareholders and prospective investors that the transaction remains subject to further negotiation and may or may not proceed.