HXTL (01085) announced on December 7, 2025, that the company, the buyer (Hengtong Group Co., Ltd.), and Jiangsu Hengxin entered into a share transfer agreement. Under the agreement, the company conditionally agreed to sell, and the buyer conditionally agreed to acquire, the 39% equity stake in the target company (Jiangsu Hengxin Technology Co., Ltd.) for a cash consideration of RMB 500 million.

Jiangsu Hengxin, a limited liability company established under Chinese law, is primarily engaged in the research, design, development, and manufacturing of telecommunications and technology products, as well as the production of mobile communication RF coaxial cables and mobile communication system switching equipment. As of the announcement date, Jiangsu Hengxin was a direct wholly-owned subsidiary of the company.

The board of directors considered the following key factors in approving the sale: (i) Strategic divestment of part of the wireless communications business to address underperforming stock performance and focus on high-growth opportunities; (ii) Growth prospects of the remaining business segments; (iii) Fairness and reasonableness of the transaction price.