Guan Chao (HKG:1872) said its wholly owned unit, Shenzhen Tianqiming, agreed to subscribe for about 5.41 million new shares in Guangzhou Haote Energy Saving Technology, according to a Tuesday Hong Kong bourse filing.

Shares of the vehicle importer fell over 2% in Wednesday morning trade.

The investment will cost about 140 million yuan and will be funded by internal resources and unutilized proceeds from a prior share placing.

The company said the subscription price of 25.86 yuan per share represents an 11.9% discount to the target company's pre-money valuation price of about 29.35 yuan per share, based on an independent valuation.

Haote Energy provides energy management services for data centers and related infrastructure in China, including consulting, system design, equipment procurement, project implementation, and maintenance, the filing said.

Separately, Guan Chao said it will reallocate about HK$70 million of unutilized net proceeds from its July 2025 share placing to fund the investment.

The funds were previously earmarked for a potential investment in an anion exchange membrane business, the filing said.