HORIZON CD (09930) announced that on March 13, 2026, its wholly-owned subsidiary, Tianjin Hongtou, entered into a share transfer agreement with Shanghai Depeng. Under the agreement, Tianjin Hongtou conditionally agreed to purchase, and Shanghai Depeng conditionally agreed to sell, a 25.6306% equity interest in Shanghai Hongzuo New Energy Technology Co., Ltd. for a consideration of RMB 77.4029 million.
As of the date of the announcement, Shanghai Depeng is a wholly-owned subsidiary of Far East Horizon (03360), which is the controlling shareholder of HORIZON CD, holding approximately 44.89% of the company's issued ordinary shares. Consequently, Shanghai Depeng is a connected person of the company under the listing rules, making the acquisition a connected transaction under Chapter 14A of the rules.
Shanghai Hongzuo is one of China's leading investors and operators of distributed photovoltaic power stations, with its primary business currently not involving overseas markets. Meanwhile, the photovoltaic markets in the Middle East and Southeast Asia are experiencing rapid growth. The Middle East, in particular, is one of the world's fastest-growing regions for photovoltaics, with local governments actively supporting industry development. The compound annual growth rate for solar installed capacity in the region is expected to exceed 50% over the next five years.
HORIZON CD has already established a scaled physical asset presence and a comprehensive network and team in the Middle East and Southeast Asia. Its equipment leasing business is becoming increasingly mature, and the equipment deployed locally can effectively support the construction of photovoltaic power stations, providing the company with a solid customer base.
The acquisition is expected to deepen the cooperative relationship between the parties and create strategic synergies in the Middle East and Southeast Asia. In the future, the two parties plan to jointly engage with leading local EPC companies. By developing a new model for overseas cooperation, they aim to accelerate the expansion of industrial opportunities across the upstream and downstream segments of the overseas distributed photovoltaic market. This initiative is intended to benefit the company and its shareholders as a whole.