TIANGONG INT'L (00826) subsidiary plans to invest in Henan Zuoneng Precision Engineering to accelerate entry into the market for PCB drilling needles and other PCB precision machining tool products.

TIANGONG INT'L (00826) announced that on September 15, 2026, the Company's indirect subsidiary, Jiangsu Tiangong Cemented Carbide Technology Co., Ltd. (Tiangong Cemented Carbide), entered into an equity cooperation memorandum with Henan Zuoneng Precision Engineering Co., Ltd. (Zuoneng Precision Engineering) and its four original shareholders. Pursuant to the memorandum, Tiangong Cemented Carbide will acquire an aggregate of approximately 48.42% equity interest in Zuoneng Precision Engineering from the original shareholders at a total consideration of RMB46 million. Concurrently, Tiangong Cemented Carbide will further subscribe for new equity in Zuoneng Precision Engineering for RMB5 million, representing 51.00% of the enlarged registered share capital of Zuoneng Precision Engineering upon completion of the subscription. Zuoneng Precision Engineering is an enterprise specializing in the research and development, production, and sales of precision tools for PCB processing. It has a manufacturing capacity of 5 million PCB drilling needles per month and can mass-produce PCB drilling needle products with a minimum diameter of 0.03mm. It supplies standard and customized drilling needles and other precision tool products to over a hundred well-known PCB manufacturers in China. The company's management team has over 20 years of experience in the research and development and manufacturing of drilling needles, with solid technical accumulation and market foundation. As a high-tech enterprise, a national-level technology-based small and medium-sized enterprise, and a provincial-level innovative small and medium-sized enterprise in Henan Province, Zuoneng Precision Engineering holds 15 utility model patents and 2 software copyrights. The Group expects that through cooperation with Zuoneng Precision Engineering, it can accelerate its entry into the market for PCB drilling needles and other PCB precision machining tool products, and further expand the market space in this niche segment through corporate governance integration of Zuoneng Precision Engineering following the Group's equity investment.