Alltronics-New (00833) announced that on September 30, 2025, the purchaser Alltronics (BVI) Limited, a directly wholly-owned subsidiary of the company, entered into a sale and purchase agreement with the vendor Seaview International Holdings Limited. The vendor conditionally agreed to sell and the purchaser conditionally agreed to purchase the sale shares, representing 51% of the issued share capital of the target company EME Limited, for a total consideration of HK$43.434 million (subject to downward adjustment). Upon completion, the target company will become an indirect non-wholly owned subsidiary of the company, and the financial results, assets and liabilities of the target group will be consolidated into the group's financial statements.
The target company is a limited company incorporated under Hong Kong law, principally engaged in the design and distribution of electronic products. As of the date of this announcement, the target group is engaged in the research and development, manufacturing and sales of electronic products. The target group comprises five companies incorporated in Hong Kong, three companies incorporated in China, one company incorporated in the United States and one company incorporated in the United Kingdom.
The target group possesses strong research and development capabilities that will complement and enhance the group's existing business operations. The target group's advanced R&D expertise and technical competence are expected to provide valuable technical support for the group's ongoing business activities and strengthen the group's competitive position in the electronics industry. This synergy will enable the group to leverage the target group's proven track record in innovation and product development to enhance its own technical capabilities and accelerate the development of new products and solutions.
The target group has established a strong market position in Europe with an extensive sales network and customer base, which will significantly supplement and diversify the group's existing sales markets. The acquisition of the target group will expand the group's customer network in the European market and enable the group to extend its geographical footprint beyond existing markets. This market expansion is expected to create new revenue streams and reduce the group's dependence on any particular geographical market, thereby enhancing the overall stability and growth prospects of the group's business.
As the group is opening new production facilities in Malaysia and Vietnam under its strategic expansion plan, certain existing production activities will be relocated from the group's factories in China to these new production facilities. The target group's business operations are expected to generate additional production orders and business opportunities that can effectively utilize the remaining capacity of the group's existing Chinese factories. This optimal allocation of production resources will maximize the utilization efficiency of the group's manufacturing assets and maintain stable operations across all manufacturing facilities, thereby enhancing overall operational efficiency and cost-effectiveness.