Fibocom Wireless Inc. (00638): Completed the sale of 100% equity of Shanghai Guangyi.

Fibocom Wireless Inc. (00638) announced that the company will hold the 29th meeting of its fourth board of directors on August 20, 2026, to review and approve the proposal regarding the increase of capital in its controlling subsidiary through debt-to-equity conversion, the termination of its equity incentive plan, and the sale of its equity. The company, along with its wholly-owned subsidiary, Shenzhen Fibocom Wireless Inc. Investment Development Co., Ltd., serving as the executing partner in the employee stockholding platform of Shanghai Guangyi Zhilian Technology Co., Ltd. (hereinafter referred to as Shanghai Guangyi), Ningbo Guangyi Enterprise Management Partnership (Limited Partnership), and Ningbo Guangxing Enterprise Management Partnership (Limited Partnership), signed the Equity Transfer Agreement for the Acquisition of 100% Equity of Shanghai Guangyi Zhilian Technology Co., Ltd. (hereinafter referred to as the Equity Transfer Agreement) with Luxshare Precision Industry Co., Ltd. (hereinafter referred to as Luxshare Precision Industry). The company, along with Ningbo Guangyi Enterprise Management Partnership (Limited Partnership) and Ningbo Guangxing Enterprise Management Partnership (Limited Partnership), will sell its total holdings of 100% equity (according to the share ratio after the debt-to-equity conversion) of Shanghai Guangyi to Luxshare Precision Industry (hereinafter referred to as this transaction). As of the disclosure date of this announcement, according to the Equity Transfer Agreement, the conditions for the delivery of this transaction have been met, and the business change registration procedures related to this transaction have been completed. The delivery of this transaction has been completed, with the equity delivery date set for September 4, 2026. After the completion of this transaction, the company will no longer hold equity in Shanghai Guangyi, and Shanghai Guangyi and its subsidiaries will no longer be included in the company's consolidated financial statements. This is expected to optimize the company's operational performance for the year, with final data subject to audit results. This transaction is beneficial for the company to integrate resources and focus on the development of its main business, improve overall operational efficiency, align with the company's long-term development strategy, and serve the overall interests of the company and its shareholders, with no detriment to the interests of the company or its shareholders, especially minority shareholders.