HK Stock Market Move | Q TECH (01478) rose by nearly 3% and plans to sell 51% stake in its Indian subsidiary to Dixon from India.

Q TECH (01478) rose nearly 3%, as of the time of writing, it rose 2.06%, to HK$10.88, with a turnover of HK$45.9463 million. On the news front, Q TECH announced that on July 15, 2025 (after trading hours), the company's indirectly wholly-owned subsidiary in India, Qutai, and its selling shareholder have signed a binding memorandum of terms with Dixon. Under this agreement, Dixon has conditionally agreed to acquire a total of 51% of the paid-up capital of Qutai through share purchase and subscription. The terms and conditions will be subject to further negotiation and will be included in the transaction documents. The preliminary total consideration for the proposed transaction is agreed at INR 5.53 billion, including a consideration of INR 4.28 billion for the share purchase and INR 1.25 billion for the share subscription. The announcement states that India has the largest population globally, with tremendous potential for the consumption of smart terminal products. Therefore, it is expected that the demand for camera modules and fingerprint recognition modules in the Indian market will continue to grow steadily. It is crucial to establish comprehensive operational management capabilities for camera modules and fingerprint recognition modules in India to capture a larger market share in the region. Additionally, with support from the Indian government, such as government subsidies, it will help Qutai in India to further expand its production capacity and enhance its ability to serve Indian customers. Given the current macroeconomic environment, diversifying collaboration with local businesses in India will help seize opportunities.