HUASHENG INTL(01323): Intends to acquire 45 million Hong Kong dollars worth of shares, accounting for 4.52% of Wisdom Moon (BVI) Limited's Class A shares.

HUASHENG INTL (01323) announced on November 12, 2024, that the buyer (a wholly-owned subsidiary of the company, Star World International Holdings Limited) intends to acquire 4.52% of the issued A shares of the target company (Wisdom Moon (BVI) Limited) from the seller (Integrated Winners Enterprises Limited) for a consideration of HK$45 million. As the buyer already holds a 13.40% interest in the issued A shares of the target company, upon completion, the company will have an indirect interest in a total of 17.92% of the issued A shares of the target company, and the target company will not be consolidated into the company's financial statements. Therefore, the financial performance of the target company will not be integrated into the group's financial statements. The target company is an investment holding company, with its main investment in Wisdom Group Holdings Limited (a limited company registered in the Cayman Islands, together with its subsidiaries collectively known as "Wisdom Group"), as of the date of this announcement, the target company holds approximately 43.28% of the voting rights in the ordinary shares (representing approximately 75.38% of the total issued share capital of Wisdom Group, including approximately 24.62% of voting rights in the preferred shares). Wisdom Group is primarily engaged in the design and manufacture of zero-emission commercial vehicles, supplying battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs). The company believes that the transition to new energy sources for commercial vehicles is still lagging behind, and the continued green transformation of the commercial BEV and FCEV industry holds enormous market potential, as hydrogen is (especially) a key clean energy solution for medium and heavy-duty commercial vehicles. FCEVs are expected to accelerate adoption in the coming years. The target group has the ability to export BEVs and/or FCEVs overseas using China's low-cost and high-efficiency supply chain advantage. Indeed, the target group has achieved significant success in the zero-emission commercial vehicle market. It has successfully launched the world's first hydrogen-powered double-decker bus for public use in Hong Kong, exported the world's first hydrogen fuel heavy-duty truck to Australia, and successfully entered the market in the Gulf Cooperation Council countries by introducing the first 12-meter hydrogen-powered city bus. Considering the future prospects of the zero-emission commercial vehicle market; the target group has cutting-edge automotive technology companies that can design and supply intelligent zero-emission vehicles worldwide; the target group's historical strength and design and manufacturing capabilities; and the backgrounds of other shareholders of Wisdom Group, the board of directors believes that the acquisition increases the company's indirect equity in the target company, providing valuable investment opportunities for the group and opportunities for diversification in the zero-emission commercial vehicle market.