CONTEL (01912) announced that on September 26, 2025 (after trading hours), the seller Shenzhen Yinhao Control Technology Co., Ltd. (an indirect wholly-owned subsidiary of the company) entered into an equity transfer agreement with the buyer Huang Jian, pursuant to which the seller conditionally agreed to sell the sale interests (being 100% equity interest in the target companies) to the buyer for a consideration of RMB 100,000, subject to the terms and conditions of the equity transfer agreement.

The target companies are Shanghai Yinhao Microelectronics Technology Co., Ltd. and Chengdu Feihuan Electronics Co., Ltd., both of which are direct wholly-owned subsidiaries of the seller and indirect wholly-owned subsidiaries of the company.

Upon completion, the target companies will cease to be indirect wholly-owned subsidiaries of the company, and the financial performance of the target companies will not be consolidated into the company's accounts.

The target companies had an aggregate unaudited net liabilities of approximately RMB 5.6 billion as of March 31, 2025. The Group expects to achieve a profit of approximately RMB 5.7 billion from the disposal, which is calculated based on the consideration to be received by the Group from the disposal plus the aggregate unaudited net liabilities of the target companies as of March 31, 2025 (before deducting any related expenses). The disposal is not expected to generate positive net proceeds (after deducting expenses related to the disposal).