MEIG Smart Technology Co., Ltd. announced that its wholly owned subsidiary, ZhongGe Smart Technology (Shanghai) Co., Ltd., signed an Equity Transfer Agreement on 28 May 2026 to purchase 100% of Huixin Property Management (Shanghai) Co., Ltd. from Minhang Investment Property Ltd. for a maximum consideration of RMB 285.49 million.

The deal structure combines an equity payment capped at RMB 85.99 million and the assumption of RMB 199.50 million in existing bank and related-party loans. Funds will be sourced from ZhongGe Smart’s internal resources and/or bank financing; no H-share proceeds will be used. Payment will be deposited into a jointly controlled account at United Overseas Bank within two business days after the agreement takes effect and will be released on the closing date, subject to standard closing conditions and regulatory approvals. The long-stop date for completing conditions precedent is 26 June 2026.

Huixin Property owns the target asset—Floors 2 to 7 of Building 1, No. 2337 Gudai Road, Minhang District, Shanghai—totalling 15,369.58 sq m. The independent valuer Yinxin Assets Appraisal Co., Ltd. assigned the company an equity value of RMB 109.58 million as of 31 December 2025, reflecting an 8.60% premium to book. As of that date, Huixin Property reported audited total assets of RMB 307.49 million and net assets of RMB 100.90 million. It recorded consecutive annual net losses of RMB 11.46 million in 2024 and RMB 155.17 million in 2025, mainly due to interest and depreciation on the property.

Upon completion, Huixin Property will become an indirect wholly owned subsidiary of MEIG, and its financial results will be consolidated. The acquisition, classified as a discloseable transaction under Hong Kong Listing Rules (applicable percentage ratio >5% but <25%), will proceed to a shareholder vote pursuant to Shenzhen Stock Exchange requirements; a circular and meeting notice will follow.

MEIG cites the need to secure dedicated R&D and office space in Shanghai, reduce lease fragmentation across its Shenzhen, Shanghai, Xi’an and Nantong sites, and support future talent recruitment and strategic growth as primary motivations for the purchase.