SKYWORTH GROUP (00751) plans to acquire a 40% stake in Fenchai Electronics Company and provide additional capital for it.

SKYWORTH GROUP (00751) announced that, based on the long-term development of the company, it will focus its resources on core businesses, reduce related-party transactions, and avoid industry competition. Skyworth Digital Co., Ltd. (Skyworth Digital), a wholly owned subsidiary of Shenzhen Skyworth Digital, plans to transfer 40% equity of Fengchi Electronics Co., Ltd. held by SKYWORTH GROUP at a price of 116 million RMB (corresponding to a registered capital of 4 million RMB). At the same time, SKYWORTH GROUP will evaluate Fengchi Electronics Co., Ltd. at a price of 104 million RMB for a capital injection (corresponding to a registered capital of 3.5795 million RMB) by transferring 100% equity of its owned Shenzhen Anshida Technology Services Co., Ltd. (Anshida Company). Before this transaction, Shenzhen Skyworth Digital held 84% of the equity in Fengchi Electronics Co., Ltd. After the sale of equity and capital injection, Shenzhen Skyworth Digital's equity in Fengchi Electronics Co., Ltd. is expected to decrease to 32.40% (subject to the actual registration). Fengchi Electronics Co., Ltd. will no longer be included in the company's consolidated financial statements. After this transaction, SKYWORTH GROUP is expected to hold 55.82% equity in Fengchi Electronics Co., Ltd.