TAILAM TECHCON (06193) announced that on April 30, 2026, the seller Shanghai Yuanxin Tai Investment Management Co., Ltd. (an indirect wholly-owned subsidiary of the company), the buyers (Mr. Li Xiantai and Ms. Li Xiujuan), and the target company Zhejiang Erge Technology Co., Ltd. entered into an agreement. Under the agreement, the seller agreed to sell, and the buyers agreed to purchase, the target shares representing 5% of the issued share capital of the target company for a consideration of RMB 17.1489 million (approximately HKD 18.8638 million).

Since the acquisition, the company has been monitoring the business and development of the target company to assess potential significant synergies between its operations and those of the group. However, after observing the performance of the target group, the directors concluded that the benefits derived from the company's role as a strategic investor in the target company were limited.

Given that the target shares constitute only 5% of the issued share capital of the target company, the company lacks the ability to exert significant influence over its management and business strategies, including its dividend policy. As there is no public market for the target shares, the company believes that realizing its investment in the target company and promptly supplementing positive cash flow would position the company to seize other business opportunities at an appropriate time, serving the best interests of the group and its shareholders as a whole.

Consequently, the group engaged in negotiations with the buyers, leading to the finalization of commercial terms for the disposal and the execution of the agreement. The board of directors considers enhancing capital efficiency, improving cash flow, and optimizing resource allocation as prudent strategies amid ongoing macroeconomic uncertainties and industry competition. The economic benefits expected from the disposal are deemed well-justified, and the board sincerely believes the transaction aligns with the overall interests of the company and its shareholders.