FS.COM has announced the signing of a share transfer agreement. The agreement, dated July 4, 2026, involves the company as the purchaser, a consortium of sellers, and the target company, Shanghai Boda Data Communication Co., Ltd.

Under the terms of the deal, FS.COM has conditionally agreed to acquire 100% of the equity in the target company from the sellers for a total consideration of 330 million yuan. Upon completion of the transaction, Shanghai Boda Data Communication will become a wholly-owned subsidiary, and its financial results will be consolidated into the group's accounts.

Strategic Rationale Behind the Acquisition

The global AI industry's rapid expansion is fueling sustained growth in the network infrastructure sector. Market demand is evolving from simple hardware procurement to a comprehensive need for high-performance, stable products, scenario-specific solutions, and resilient supply chains.

FS.COM possesses a solid foundation in global brand recognition, optical communication products, and digital operation services. The target company brings over three decades of deep expertise in the data communication field, with significant accumulated strengths in research and development, manufacturing, and product systems. This expertise is highly complementary to the group's existing capabilities.

Enhancing Long-Term Competitive Positioning

This acquisition represents a forward-looking and proactive strategic move by the group to position itself within the long-term competitive landscape of the network infrastructure industry. It is a key step in continuously building out the group's comprehensive, end-to-end capabilities in this sector.

By integrating the core strengths of both entities, the group aims to persistently enhance its long-term capacity and overall competitiveness in serving global clients. The deal is central to the group's strategy of deepening its involvement in the network infrastructure domain and consolidating its long-term competitive advantages.

Core Objectives and Expected Benefits

The primary goal is to comprehensively upgrade the group's integrated capabilities across four core areas: research and development innovation, large-scale manufacturing, supply chain management, and global services.

By absorbing Boda's complete R&D system, production lines, full range of product matrices, and experienced technical team—accumulated over more than 30 years in the data communication industry—the group will solidify its foundation in hardware self-development and stable supply.

This integration is expected to significantly strengthen the group's competitive edge in high-growth, high-value downstream applications such as enterprise networks, data centers, and AI computing infrastructure. It will also serve to continuously broaden revenue streams, consolidate global market share, and establish a robust capability foundation for the group's long-term, steady growth.