GRAPHEX GROUP (06128) subsidiary investment in Chuanqi International New Energy Vehicles for an 18% equity stake.

GRAPHEX GROUP (06128) announced that its wholly-owned subsidiary, Allied Apex Limited (Allied Apex), has invested 18% of the total issued share capital of Chongchi International New Energy Vehicles Limited (Chongchi) for HK$1800. Chongchi is a limited company registered in Hong Kong, mainly engaged in exporting electric vehicles to Southeast Asia, the Middle East, Europe, and North America markets. Allied Apex's total investment in Chongchi will not exceed HK$5 million. After Allied Apex's investment, the total issued share capital of Chongchi is held by Allied Apex and three other individual shareholders at 18%, 40%, 30%, and 12%, respectively. The other three shareholders of Chongchi have rich experience in the automotive export industry. The strategic value of the company's investment is further enhanced as Chongchi established a Sino-foreign joint venture, Xuzhou Hachi Motorcycle Technology Co., Ltd. (Hachi), in Xuzhou City, Jiangsu Province, China. Hachi was established in mid-September 2025 with a registered capital of RMB 5 million. The equity structure of Hachi is held by Chongchi, Yidou (Xuzhou) International Trade Partnership (Limited Partnership) (Yidou), and Wuxi Riding on Waves Vehicles Co., Ltd. (Talan) at 40%, 55%, and 5% respectively. After its establishment, Hachi acquired the registered name and trademark "Hachi" at zero cost, which will be used for the electric vehicle series brand in Southeast Asia, the Middle East, Europe, and North America markets. Hachi will operate a 60,000 square meter production plant in Xuzhou, leased from the government, for producing short-range electric vehicles including two-wheelers, three-wheelers, and four-wheelers. The plant's designed capacity is 100,000 electric vehicles and 50,000 sets of components, with production expected to start in November 2025. Hachi's business plan for 2026 includes applying for European Economic Community certification and a global manufacturer identification code. It is expected that Hachi's total revenue in 2026 will exceed RMB 150 million, with a production volume of 30,000 electric vehicles. The plant is expected to reach full capacity by 2028. The Board of Directors believes that the investment in Chongchi presents a strategic and advantageous opportunity for the company to establish its business layout in the high-growth electric vehicle sector and the related downstream battery industry.