Confidence Intelligence Holdings Limited (the “Company”), stock code 1967, has announced the acquisition of a 30% equity interest in a non-wholly owned subsidiary (the “Target Company”) for a total consideration of RMB40 million. The purchase is set out in a Sale and Purchase Agreement dated 17 October 2025 between a wholly-owned subsidiary of the Company (the “Purchaser”) and the current 30% owner, Mr. Chen Wensheng (the “Vendor”).

Upon completion, the Company will own 100% of the Target Company’s equity interest. The Target Company specializes in surface mount technology (SMT) processing services within the electronic manufacturing services (EMS) industry. According to unaudited figures, the Target Company recorded revenue of approximately RMB86.6 million and net profit after taxation of approximately RMB16.5 million for the year ended 31 December 2024. Its unaudited net assets value as of 30 June 2025 was about RMB49.3 million.

The announcement cites expectations of steady EMS demand in the People’s Republic of China, supported by data indicating growth in production volumes of smartphones, micro-computers, and integrated circuits. The Board expects significant value by gaining full ownership of the Target Company, noting its contributions to revenue and profitability. The total consideration of RMB40 million was arrived at after referencing a preliminary valuation of around RMB40.27 million prepared by an independent valuer.

As at the date of the announcement, the transaction qualifies as a major and connected transaction subject to reporting, announcement, circular, and shareholders’ approval requirements. An extraordinary general meeting will be convened for shareholder consideration. A circular, including further details regarding the acquisition, is expected to be dispatched on or before 27 November 2025. Shareholders and potential investors are advised to exercise caution as completion depends on the satisfaction of specified conditions precedent and the transaction may or may not proceed.