Q Technology (Group) Co., Ltd. (01478) announced that on July 15, 2025 (after trading hours), its indirect wholly-owned subsidiary Q Technology India and selling shareholders entered into a binding term sheet with Dixon Technologies India Ltd. Under this agreement, Dixon will conditionally acquire a 51% paid-up share capital stake in Q Technology India through a share purchase and subscription arrangement. Specific terms will be finalized in definitive transaction documents.

The total consideration for the proposed transaction is preliminarily set at ₹5.53 billion (approximately $66.3 million), comprising: (i) ₹4.28 billion for the share purchase; and (ii) ₹1.25 billion for the share subscription.

India, with the world's largest population, possesses immense consumption potential for smart terminal products. This positions the Indian market for sustained growth in demand for camera modules and fingerprint recognition modules. Establishing comprehensive operational capabilities in India for these components is critical to securing greater market share.

Indian government support initiatives, such as manufacturing subsidies, could further accelerate Q Technology India's production capacity expansion and enhance its service capabilities for local clients. Partnering with established domestic Indian enterprises like Dixon strategically leverages current macroeconomic conditions.

As one of India's largest electronics manufacturing services (EMS) providers, Dixon shares complementary industry expertise and customer relationships with Q Technology India. Dixon demonstrates substantial procurement requirements and long-term development plans for camera and fingerprint modules.

Q Technology's board believes forging this equity partnership with Dixon will catalyze rapid growth for Q Technology India, enabling swift market share capture in India. Ultimately, this collaboration is expected to enhance operational performance for both Q Technology India and the broader group.