Q TECH (01478) intends to sell 55.3 billion Indian rupees to India's Qutai, accounting for 51.08% of the shares.

Q TECH (01478) announces that on September 17, 2025 (after trading hours), it has signed a share subscription and purchase agreement with Dixon, and Dixon has conditionally agreed to acquire a total of 51.08% of the issued share capital of Indian Q Titanium through share purchase and subscription. The total consideration for the transaction is 5.53 billion Indian Rupees (equivalent to approximately RMB 447 million), including (i) the consideration for the share purchase of 4.28 billion Indian Rupees (equivalent to approximately RMB 346 million), and (ii) the consideration for the share subscription of 1.25 billion Indian Rupees (equivalent to approximately RMB 101 million). Upon completion, the group will retain a 48.92% equity interest in Indian Q Titanium, which will no longer be consolidated into the company as a subsidiary. After completion, the loan provided to Indian Q Titanium by the group will continue to be maintained and will constitute financial assistance provided by the group under Chapter 14 of the Listing Rules. The board considers the terms of the share subscription and purchase agreement, shareholder agreement, and the loan to be normal commercial terms, and the proposed transactions to be fair and reasonable, in the overall interests of the company and its shareholders, based on the following factors: (i) providing the loan to Indian Q Titanium will help maintain its operations and improve its production capacity, thereby improving its performance. Although Indian Q Titanium will no longer be a subsidiary of the company post-completion, it will be equity-accounted for in the group's financial statements as an associated company, and its performance will continue to impact the group's operating performance. Therefore, the improved performance of Indian Q Titanium is also in the interest of the group; (ii) the group will provide the loan with its own funds, and the agreed interest rate on the loan is more favorable than the interest rate on bank fixed deposits during the loan term, potentially bringing in approximately 4.715 million USD (equivalent to approximately RMB 33.483 million) in interest income for the group; and (iii) the terms of the loan remain basically unchanged after completion, maintaining continuity without any revisions or differences.