HONBRIDGE (08137) plans to acquire 51% of Juneng (Jiangsu) Power Technology for 424.8 million yuan.

HONBRIDGE (08137) announced that on August 21, 2026, the company signed a purchase agreement with Lianfengtai Technology, Geely Technology Group, and the target company. Geely Technology Group has conditionally agreed to sell, while the company has conditionally agreed to acquire (through a wholly foreign-owned enterprise being established by Lianfengtai Technology) a 51% equity stake in the target company, Juneng (Jiangsu) Power Technology, for a consideration of RMB 424.8 million (or the equivalent in Hong Kong dollars). Upon completion, the target company will become a non-wholly-owned subsidiary of the company, and its financial performance will be consolidated into the group's financial statements. As of the date of this announcement, Lianfengtai Technology is in the process of establishing a wholly foreign-owned enterprise (WFOE) in China, which will be fully owned by Lianfengtai Technology, and the company will acquire the target equity through this WFOE. According to the acquisition agreement, the company and Lianfengtai Technology must complete the establishment of the WFOE, facilitate the completion of the necessary foreign direct investment foreign exchange registration, and after its registration, ensure it becomes a party to the acquisition agreement as the buyer. The WFOE will subsequently assume all rights and obligations of the buyer under the acquisition agreement, effective from the date of the acquisition agreement. The target company is a provider of integrated solutions for low-voltage three-electricity (battery, motor, and electronic control) power systems, and has concurrently developed a dual-core business model consisting of these solutions and the research, production, and sales of new energy lithium-ion batteries. The target company has complete delivery capabilities for low-voltage three-electric systems, providing customers with integrated power system solutions that incorporate battery cells, modules, and battery management systems (BMS), with its self-developed square aluminum shell lithium iron phosphate (LFP) battery cells as core supporting products. The relevant systems and battery products are currently mainly used in small low-voltage power vehicles such as electric two-wheelers and three-wheelers. The target company plans to expand its related products and solutions to applications in commercial vehicles, small power, battery swapping, and intelligent Siasun Robot & Automation fields, in order to broaden its product and customer coverage. The target company also plans to expand into overseas markets, including research and business layout for oil-to-electric solutions related to micro new energy vehicles and CECEP Solar Energy's range-extended solutions; in addition, the target company is developing sodium-ion battery-related technologies (including positive electrode materials and cell products) as a potential new business direction outside of its existing lithium battery operations. The acquisition will enable the group to expand its lithium battery business and align with the group's business development strategy for the following reasons: (1) The acquisition will increase the scale of the group's lithium battery business. Upon completion, the target company will become a subsidiary of the company, and its financial performance will be consolidated into the group's financial results. This will allow the group to further develop its lithium battery business alongside its existing resource operations. (2) The target company has expanded its product range from a single battery cell to an integrated system solution that includes batteries, motors, electronic control systems, and battery management systems. Therefore, the acquisition will broaden the scope of the group's products and services and support its business development in the two-wheeler and three-wheeler markets. (3) The acquisition will enable the group to integrate the target company's business with the group's existing technologies and supply chain resources. The group intends to leverage these integrated resources to develop its lithium-ion battery business in the domestic three-wheeler market and overseas markets, including Southeast Asia. (4) In light of the above, the acquisition is expected to complement the group's existing business and support its future development.