Ningbo Huaxiang Electronic (002048.SZ) intends to sell its European business with a preliminary pricing of 1 Euro.

Ningbo Huaxiang Electronic (002048.SZ) announces that since 2014, the European business has been in long-term significant losses, which have had a considerable impact on the overall development of the listed company. In order to thoroughly solve the long-term losses in Europe, the company commissioned an intermediary agency to start negotiations with multiple potential buyers in August 2024. After in-depth discussions and negotiations, the company ultimately decided on Mutares AG (a private equity investment company listed in Germany) as the transaction partner. In order to secure the business opportunity, on February 25, 2025, the company signed a share purchase and transfer agreement with Mutares AG, subject to certain conditions, intending to sell Ningbo Huaxiang Electronic's European subsidiaries, including 6 companies in Germany, Romania, and the UK (referred to as the "Target Companies"). The initial pricing for this transaction is set at 1 euro, with the company assuming the debt of the Target Companies and guaranteeing certain operating funds. The final actual delivery price will be determined based on the agreement and reference to the audited financial data of the Target Companies as of December 31, 2024.