TRULY INT'L (00732): Subsidiary intends to acquire production and auxiliary equipment for 4.8 billion yen to establish a new e-paper display device factory in China

TRULY INT'L (00732) announces that on October 20, 2026, the Company's indirectly wholly-owned subsidiary, Truly Opto-Electronics Limited, entered into equipment purchase agreements with suppliers to acquire production and auxiliary equipment for establishing a new e-paper display device factory in China. As at the date of this announcement, the aggregate consideration for the equipment acquisitions entered into by Truly Opto-Electronics Limited is JPY 4.8 billion (equivalent to approximately HK$237.6 million). In addition, the Group will need to acquire additional equipment to complete the construction of the factory. The Board believes that the construction of the new e-paper display device factory will add value to the Company's existing business, as the Company possesses the industry experience and core technologies required for the new factory and is well-positioned to capture the growth potential of the e-paper display industry. The Board recommends seeking shareholder approval at an extraordinary general meeting for an acquisition mandate to authorize and empower the Board to complete the acquisition of the remaining equipment required for the factory (possible further acquisitions) within a 12-month period, with an aggregate amount not exceeding HK$600 million. In addition, as one or more of the applicable percentage ratios of the possible further acquisitions (when aggregated with the equipment acquisitions) are expected to exceed 100%, if the possible further acquisitions materialize, the possible further acquisitions (when aggregated with the equipment acquisitions) will constitute a very substantial acquisition of the Company and will be subject to the reporting, announcement and shareholder approval requirements under Rule 14.07 of the Listing Rules. Accordingly, the Board recommends seeking an acquisition mandate from shareholders at an extraordinary general meeting to carry out the possible further acquisitions. The Company possesses the necessary technical capabilities and industry experience required for the new factory, as it has been engaged in the flat panel display business since the 1990s and has established a diversified product line, including AMOLED, PMOLED and TFT displays, along with efficient production processes and high-quality control systems. The Company has also established long-term and stable strategic partnerships with key industry suppliers and has secured reliable supply channels for raw materials used in its manufacturing processes, which will help ensure a stable supply of raw materials for the new factory and enable the Company to respond quickly to market demand and achieve mass production. Furthermore, the Board believes that the construction of the new factory is complementary to the Company's existing business, as the Company can share resources with its existing business. The manufacturing process of e-paper products relies on 16 key display and manufacturing core technologies, most of which are consistent with the technology systems already adopted in the Company's existing products. These processes can be transferred and directly applied to the e-paper business, thereby shortening the technology preparation cycle and reducing the initial risks and costs of product development. The new factory will also share the Group's existing core technical personnel, including its experienced core R&D team and its database of product design documents and materials, ensuring solid technical support for the successful launch and operation of the e-paper project. The products of the new factory and the e-paper industry also have significant growth potential, and the application scenarios of e-paper have expanded to areas such as retail, education, office products and healthcare. The mass production processes of e-paper are also increasingly mature, and the global e-paper market size is expected to record significant growth in the coming years, indicating substantial market growth potential. The Group also has an extensive sales network and a long-term stable major customer base, including large domestic and international consumer electronics brands, which the Directors believe will provide strong support for the product demand of the project and will enable the Group's e-paper products to be successfully launched into the market.