CONFIDENCE IN (01967) announced on October 17, 2025, that the buyer, Shenzhen Confidence Intelligent Electronics Co., Ltd. (a wholly-owned subsidiary of the company), intends to acquire 30% equity of the target company, Chongqing Confidence Technology Co., Ltd., from the seller, Mr. Chen Wensheng, for a total consideration of RMB 40 million.

The target company specializes in surface mount technology processing services, which is a core aspect of the electronic manufacturing services (EMS) industry. Surface mount technology involves the precise manufacturing process of automatically placing and soldering electronic components onto printed circuit boards, which is critical to the production of electronic devices and components. As of the date of this announcement, the company holds a 70% equity stake in the target company. Upon completion of the acquisition, the company will own 100% of the target company, and its financial performance will continue to be consolidated into the company's financial statements.

The board believes that this acquisition aligns with the group’s strategy, as obtaining full ownership will (i) enhance the group’s flexibility in technology development, strategic planning, and the allocation of production resources; (ii) enable the group to maximize returns from the target company's proven profitability (with a net profit margin of approximately 19.4% for the fiscal year 2024) without considering minority shareholder interests, thus strengthening the overall financial performance of the group; and (iii) streamline decision-making processes and unify management controls, particularly concerning strategic planning and market expansion initiatives. Through comprehensive resource integration and knowledge sharing within the group’s ecosystem, the group aims to capitalize on market opportunities in the electronic manufacturing services sector more efficiently, thereby enhancing its strength and seeking more business opportunities.