Shanghai Longcheer Technology Co., Ltd. (LONGCHEER; HKEX: 09611, SSE: 603341) has signed definitive equity transfer agreements to purchase a 60% interest in two mainland subsidiaries—KC Precision Technology (Dongguan) Co., Ltd. and Dongguan Geeia Metal Products Co., Ltd.—for a total cash consideration of RMB540.00 million (about USD75 million). The transaction was executed on 30 March 2026 and qualifies as a discloseable transaction under Hong Kong Listing Rules.

Post-transaction, LONGCHEER will hold 60% of each target, while founders Mr. Wu Yutao and Mr. Xiong Dao’an will retain 18.8% and 17.2% stakes respectively; an employee incentive platform will own the remaining 4%. Current shareholder Suzhou Anjie Capital will fully exit. Both targets will become consolidated, non-wholly-owned subsidiaries of LONGCHEER upon completion.

Transaction terms and valuation • Purchase price: RMB180.00 million payable to each of the three vendors, totalling RMB540.00 million. • Payment schedule: 55.56% (RMB100.00 million per vendor) within 10 business days after satisfaction of conditions precedent; remaining 44.44% (RMB80.00 million per vendor) within 15 business days following change-of-ownership registration. • Independent valuer Shenzhen Pengchen appraised 100% of the combined equity at RMB928.98 million (KC Precision: RMB911.94 million; Geeia Metal: RMB17.04 million) as of 31 Dec 2025 using a discounted cash-flow approach. The agreed price implies a 3.3% discount to the valuation midpoint.

Target companies’ performance (PRC GAAP) 1. KC Precision (est. 2021) – 2025 revenue: RMB486.84 million – 2025 net profit: RMB132.79 million – Total assets: RMB311.09 million; net assets: RMB172.87 million

2. Geeia Metal (est. 2017) – 2025 revenue: RMB9.09 million – Net assets: RMB14.37 million – Total assets: RMB19.26 million

Strategic rationale LONGCHEER, a leading global smart-device ODM for brands such as Xiaomi, Samsung and Huawei, aims to integrate KC Precision’s vapor-chamber heat spreader technology and Geeia Metal’s precision metal processing capabilities into its product-design and manufacturing platform. Management expects the deal to bolster in-house thermal-management solutions, enhance cost control, and deepen penetration in smartphones, tablets, AI PCs and other smart terminals.

Governance and safeguards Each target will adopt a five-member board—three directors appointed by LONGCHEER and two by the founding shareholders, with LONGCHEER nominating the chairman. Founders have provided non-compete undertakings, and the agreements include penalties of up to RMB36.00 million for material breach and daily late-completion damages of 0.03% of the unpaid/withheld consideration.

Regulatory context Because the highest applicable percentage ratio is above 5% but below 25%, the deal is classified as a discloseable transaction under Chapter 14 of the Hong Kong Listing Rules, requiring public announcement but not shareholder approval. The valuation, based on discounted cash flow, constitutes a profit forecast under Rule 14.61; an additional announcement will follow within 15 business days.

Completion is expected within 20 days after satisfaction of conditions precedent, after which the financial results of KC Precision and Geeia Metal will be consolidated into LONGCHEER’s accounts.