Gaowei Electronics plans to sell machinery and equipment to Luxshare subsidiaries for a price not exceeding 40 million yuan

On May 7, Gaowei Electronics announced that the company had signed a machine sales agreement with Lijing Innovation Technology Co., Ltd. (hereinafter referred to as Lijing Innovation). According to the agreement, the company will sell some machines, equipment and auxiliary components to Lijing Innovation. The transaction amount will not exceed 40 million yuan. The final amount will be adjusted and determined based on factors such as the net value of the equipment, actual quantity and delivery cost.

According to the announcement, the equipment sold this time includes high vacuum coating equipment, laser cutting machines, high-precision chip bonding machines, as well as plasma, ultrasonic and centrifugal cleaning equipment. The original acquisition cost of the relevant assets was approximately RMB 53.077 million. As of March 31, 2026, the unaudited net asset value was approximately RMB 39.796 million. The company expects further adjustments to the net asset value at delivery due to equipment depreciation.

Gaowei Electronics stated that the transaction price was determined based on fair negotiations between the two parties, and took into account factors such as the net book value of the equipment, accumulated depreciation, equipment operating conditions, and the market value of similar equipment. As the sale price is expected to be approximately equal to the net asset value at the time of delivery, no significant gain or loss is expected from the transaction and the proceeds will be used primarily to replenish general working capital.

Cowell Electronics is a precision optical solutions provider headquartered in Hong Kong, China. It is mainly engaged in the design, development, manufacturing and sales of optical modules and components. Its products are used in mobile devices such as smartphones and tablets.

Lijing Innovation was formerly the camera module division of Lite-On Technology. It was renamed and established after being acquired by Luxshare Group for US$360 million. The company focuses on the mid-to-high-end optical module and system integration market for global consumer electronics, automotive electronics, smart office applications, and other emerging fields such as smart robots, XR smart terminals, smart glasses, etc., and has now entered the supply chain of manufacturers such as Apple and Huawei.

Gaowei Electronics said that the optical module industry has a fast technology iteration speed. In order to maintain manufacturing capabilities and market demand, the company will regularly evaluate the utilization rate and technical adaptability of production equipment. The sale of some equipment with low utilization rate will help optimize resource allocation, reduce maintenance costs, and invest resources in more advanced production technology and high-standard equipment.

Since Lijing Innovation is a company related to the controlling shareholder of Gaowei Electronics, this transaction constitutes a related transaction according to the Hong Kong Stock Exchange listing rules. The announcement pointed out that when combined with another machine sales agreement signed by the company with Lijing Innovation in September 2025, the relevant applicable percentage rate is higher than 0.1% but lower than 5%. Therefore, it is subject to reporting and announcement regulations, but independent shareholder approval is exempted.