Suzhou Dongshan Precision Accelerates AI-Centric Expansion with RMB580.54 Million Huacun Buyout and RMB205.39 Million Minority Stakes

Bulletin Express
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Suzhou Dongshan Precision Manufacturing Co., Ltd. (the Group) has disclosed a series of post-track-record investments that strengthen its positioning in AI data-centre infrastructure and advanced materials.

Key transaction – Huacun Acquisition • Structure: Four equity transfers and a capital increase lifted Dongshan Precision’s holding in Jiangsu Huacun Electronic Technology to 73.44%, converting the flash-storage specialist into a consolidated subsidiary from November 2026. • Financial terms: Maximum consideration capped at RMB580.54 million (RMB435.58 million base plus up to RMB145.00 million contingent on SSD controller mass-production and customer certification milestones). RMB375.60 million had been paid by 6 November 2026, funded entirely from internal resources. • Target metrics: Jiangsu Huacun recorded after-tax losses of RMB49.75 million in 2024 and RMB28.54 million in 2025; year-end assets slipped from RMB169.11 million to RMB128.02 million. • Strategic rationale: Enterprise SSD controllers and storage modules align with Dongshan Precision’s AI data-centre client base, expanding the Group’s footprint in high-performance storage solutions.

Minority investments – RMB205.39 million deployed 1. Yuanchu Wanwu (electronic skin; 2.53% stake) – RMB5.00 million. 2. Huahe Jidian (MPCVD diamond thermal materials; 2.38% combined stake via capital increase and equity transfers) – RMB15.00 million. 3. Hongfucheng (thermal interface materials, SZSE: 301716; 0.61% IPO placement) – RMB35.39 million. 4. CanSemi Technology (12-inch silicon photonics foundry, SZSE: 301660; 0.43% IPO placement) – RMB150.00 million.

Aggregated outlay: RMB205.39 million, financed from existing cash. Audited 2025 results show Hongfucheng profitable (RMB270.32 million net), while Huahe Jidian and CanSemi remained in early-stage loss-making positions.

Compliance update The investments occurred after 30 June 2026, the end of the IPO track-record period. Omission from the October 2026 Prospectus breached HKEX Listing Rules 4.04(2) and 4.04(4). Management states the lapse was inadvertent; each transaction falls below the 1% notifiable threshold, and none involved IPO proceeds. Enhanced internal-control measures include revised investment protocols, cross-departmental monitoring, external legal oversight, and regular Listing Rules training.

Financial impact Given the modest scale—Huacun and the four minority stakes together total approximately RMB785.93 million—and exclusive reliance on internal funds, the Board does not expect material changes to the Group’s financial position or its stated use of IPO proceeds.

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