SOUTH CHINA FIN (00619) announced on November 6, 2025, that its indirect wholly-owned subsidiary, Radiant Glory Investments Limited (Radiant Glory), has entered into a memorandum of understanding (MOU) with Mr. Zhu Mapao, a Chinese citizen and major shareholder/director of Beijing Zhong'an Hangxin Technology Co., Ltd. The agreement outlines plans to establish a joint venture (JV) in Hong Kong, with Radiant Glory serving as the majority shareholder.
Zhong'an Hangxin Technology specializes in designing, manufacturing, and domestically distributing security and riot control products, including but not limited to: (1) acoustic denial systems; (2) riot control equipment; (3) drone and counter-drone systems; and (4) new materials for such products (collectively, "the Products"). The company also provides integrated solutions and operational support services for these Products, which are widely used in maritime law enforcement, airports/ports, border control, summit security, emergency management, riot response, unmanned facilities, and global security operations.
Under the MOU, the JV will focus on: 1. Global promotion and sales of the Products; 2. Providing overseas clients with technical support and solutions for the Products; 3. Conducting R&D to enhance product functionality and quality to meet overseas market demands.
Radiant Glory will assist the JV in establishing sales teams in Hong Kong and/or other overseas regions, while Mr. Zhu will contribute management expertise, recruit technical personnel, and facilitate Zhong'an Hangxin’s overseas sales through the JV.
The Board believes this collaboration leverages both parties’ resources and expertise, enabling the Group to enter the overseas high-tech security and riot control equipment market. Key strategic advantages include: 1. **Broad Market Potential**: The Products cater to diverse applications such as perimeter security, unmanned systems, and emergency response. Rising global demand for advanced security solutions presents significant growth opportunities, potentially diversifying revenue streams and enhancing shareholder value. 2. **Alignment with National Policies**: The JV aligns with China’s 15th Five-Year Plan for high-tech industry development and its "Going Global" strategy, as well as Hong Kong’s push for tech innovation and international cooperation. Leveraging Hong Kong’s status as a financial hub, the JV aims to accelerate global expansion of high-tech products.
Beyond this venture, SOUTH CHINA FIN continues to explore opportunities in high-tech sectors (e.g., biotech, fintech) and emerging industries. The JV marks a strategic expansion into high-tech security, with plans to pursue further investments aligned with long-term growth objectives to strengthen market competitiveness.