LEOCH INT'L (00842) plans to spin off Leoch Energy Inc. and list it separately on the US stock exchange.

LEOCH INT'L (00842) announces that the company has submitted a proposal to the Stock Exchange regarding the proposed spin-off in accordance with the Listing Rules Rule 15 and the application guidelines, and to separately list the spin-off company Leoch Energy Inc. on the US stock exchange. The company has received approval from the Stock Exchange to proceed with the proposed spin-off. As of the date of this announcement, the spin-off company is a direct wholly-owned subsidiary of the company. The proposed spin-off will involve the distribution of all the shares of the spin-off company held by the company to its shareholders on a pro rata basis. After the proposed spin-off and distribution are completed, the spin-off company will be separated from the company, creating a parallel listing structure where shareholders of the company will have shares in the spin-off company. The spin-off company is an exempt company registered under the laws of the Cayman Islands and is a direct wholly-owned subsidiary of the company as of the date of this announcement. The main business of the spin-off company group includes selling reserve batteries, starter batteries, and power batteries in Europe, the Middle East and Africa, the Americas, and the Asia Pacific region (excluding mainland China, Hong Kong, and Macau). The Board of Directors believes that the proposed spin-off will bring the following benefits, which are commercially advantageous to both the company and the spin-off company, and are in the overall interest of the shareholders: - The proposed spin-off will strengthen the operational and management capabilities of both the retained group and the spin-off company group, as well as their respective recruitment and retention of personnel capabilities. - The proposed spin-off and distribution will create two independent businesses, the retained group and the spin-off company group, focusing on their respective regions. The Board believes that they are prepared to achieve sustainable growth and increase market share in their respective regions through innovation and new product offerings. - The proposed spin-off will improve operations, enhance financial transparency and corporate governance for both the retained group and the spin-off company group. Investors will have a clearer understanding of the businesses in different sectors and make better investment decisions through the proposed spin-off, thereby achieving a fair valuation of the group and maximizing the interests of all shareholders of the retained group and the spin-off company group. - The proposed spin-off and distribution will allow shareholders and investors to evaluate the investment composition in each business of the retained group and the spin-off company group separately and choose whether to continue participating in both businesses or adjust their investment exposure, thereby releasing and increasing the market value of the retained group and the spin-off company.