Cowell Electronics (01415) has announced that on May 7, 2026, after trading hours, the company entered into a machinery sales agreement with LITCL (Lijing Innovation Technology Co., Ltd.). Under the agreement, Cowell will sell and the LITCL group will purchase machinery for a consideration not exceeding RMB 40 million, which may be subject to adjustments. The machinery, equipment, and/or auxiliary components, designed to LITCL's specifications, include but are not limited to various high-vacuum coating machines, laser cutting machines, high-precision chip bonding machines, and various plasma, ultrasonic, and centrifugal cleaning equipment. The optical module and component industry is characterized by rapidly evolving technology and increasingly stringent quality requirements. In this context, the Cowell group regularly reviews the utilization and technological relevance of its production equipment portfolio to ensure its manufacturing capabilities align with its strategic objectives and the evolving needs of its customers. The board of directors believes that the machinery sale is consistent with the group's commitment to technological progress, operational efficiency, and the highest quality standards for its products. The sale is viewed as a prudent measure that allows the group to optimize resource allocation, reduce ongoing maintenance and related costs for machinery that is no longer a focus of its current production requirements, and reallocate funds towards investing in more advanced production technologies and higher-specification equipment to support the group's long-term competitiveness. The disposal also ensures that valuable and functional production resources can continue to be used efficiently, representing a mutually beneficial arrangement for both the Cowell group and the LITCL group.