WAI CHI HOLD (01305) announced that on September 15, 2025, the company's indirect wholly-owned subsidiary Techwide Management Company Limited plans to acquire all issued ordinary share capital of Joyful Family Consultant Limited from Ms. Lu for a consideration of HK$155 million.
According to the announcement, the target company is primarily engaged in investment holding and currently holds all equity interests in Letu Optoelectronics. Letu Optoelectronics owns the land located in Hongda (International) Industrial Manufacturing City, Luoyang Town, Boluo County, Guangdong Province, China, with total land use rights covering approximately 86,118 square meters.
The board of directors believes that the acquisition complements the group's existing LED backlight and lighting product portfolio, enabling the group to further expand its business scale and scope in LED backlight and lighting products. Through enhanced productivity and improved operational efficiency at lower costs, the acquisition is expected to deliver better returns to shareholders.
The company's core business involves manufacturing LED backlights, lighting products, and semiconductor storage chips, requiring scalable production capacity to meet growing market demand. Through acquiring this land via the transaction, the company will be able to establish core production facilities specifically designed for integrated manufacturing, production, and related processes, reducing dependence on third-party facilities and lowering fundamental costs including production and operational expenses.
Owning this land also provides the group with flexibility to adapt its production facilities to market trends and emerging advanced technologies and/or key businesses with high economic growth potential. As the group's current production capacity is insufficient to meet customer order demands, it is necessary for the group to expand capacity based on upstream and downstream market developments and customer requirements.
In this regard, the available land use rights area provides the group with adequate space to expand capacity when deemed appropriate by group management, accommodating new, progressive, and revenue-generating product lines. Implementation of the land acquisition will also enable the relocation of certain assembly factories from the Shenzhen production base to this land, consolidating and ensuring smooth and streamlined operations of production lines.
Furthermore, the land will meet the group's future growth and expansion needs. Therefore, through establishing new production bases and introducing advanced production equipment, the acquisition aims to expand the group's capacity to address pressing capacity bottleneck issues, meet increasing market demand, and lay a solid foundation for the group's continued expansion and business growth.