SMIT (02239) announced that on September 6, 2025, the company, its subsidiary S2C Holding, and S2C Shanghai entered into an equity transfer agreement with investor Zhongwan Private Equity Fund Management Co., Ltd. Under the agreement, S2C Holding conditionally agreed to sell its 16% stake in S2C Shanghai, while the investor conditionally agreed to purchase the stake for a consideration of RMB 212 million.

S2C Shanghai is a limited liability company incorporated under Chinese law. S2C Shanghai Group is a supplier of hardware-based rapid verification systems and software. S2C Shanghai is a company focused on high-tech research and development, operating in business areas that require substantial ongoing capital investment to maintain growth and innovation.

The introduction of the investor will provide S2C Shanghai with strategic guidance and industry expertise, enabling S2C Shanghai to leverage the investor's extensive experience in private equity and venture capital management, and potentially helping it identify and pursue new business opportunities and strategic partnerships.

The equity transfer will also allow the company to realize significant returns from its early investment in S2C Shanghai while retaining a substantial equity stake to continue participating in S2C Shanghai's long-term development and value creation.