On January 12, 2026, XXF Group (02473) announced that its indirect wholly-owned subsidiary, Xiyun Dikong (Fujian) Technology Co., Ltd. ("Xiyun Dikong"), entered into a non-binding memorandum of understanding ("MOU") with Xiamen Kuangshi Technology Co., Ltd. ("Kuangshi Technology") concerning a potential transaction. The transaction involves Xiyun Dikong acquiring a 51% equity interest in Kuangshi Technology, either through a share purchase or a capital increase.

According to the MOU, upon the completion of the potential transaction, Xiyun Dikong will hold a 51% stake in Kuangshi Technology. Specific transaction arrangements and core terms, including but not limited to the consideration and payment methods, have not yet been finalized. These details will be determined in a formal agreement, contingent upon the outcomes of due diligence investigations and the fulfillment of prerequisite conditions.

Kuangshi Technology is a company incorporated in 2020 in the People's Republic of China and is a leading domestic provider of comprehensive millimeter-wave radar intelligent perception solutions. It possesses a full-chain product portfolio encompassing chips, algorithms, modules, complete machines, and system platforms. By integrating artificial intelligence and multi-modal technologies, it delivers high-performance products and holistic solutions to clients in various fields, including assisted driving and the Internet of Things (IoT).

Leveraging its nationwide direct sales network and extensive experience in vehicle operation and management, the Group is actively exploring and deepening its involvement in the unmanned vehicle business sector. Kuangshi Technology's research, development, and solutions in millimeter-wave radar intelligent perception hold broad application prospects within the intelligent driving field, demonstrating significant synergistic potential with the Group's unmanned vehicle initiatives.

Based on the foregoing, the Board of Directors believes that if the potential transaction is successfully completed, it is expected to assist the Group in expanding its business within the intelligent driving automotive industry chain. This move would enhance the Group's technological reserves and product competitiveness, solidifying its strategic positioning in this business domain. Furthermore, it is anticipated to boost the Group's business innovation capabilities, strengthen its capacity for sustained growth, and align with the overall interests of the Company and its shareholders.