USPACE TECH (01725) plans to invest in and acquire 51% equity, rights and substantial assets of Zhejiang Yuehua Communication.

USPACE TECH (01725) announced that on October 29, 2025, its wholly-owned subsidiary Guangdong Qin Yue Intelligent Technology Co., Ltd. signed a memorandum of understanding with Mr. Wang Chaosheng regarding the investment and acquisition of 51% equity, rights, and substantial assets of Zhejiang Yuehua Telecommunications Co., Ltd. The target company is a company established in China, specializing in the production of power plug lines, household appliance wire harnesses, automobile, Siasun Robot & Automation cables, new energy and energy storage wire harnesses, high-speed 5G connectors, consumer electronics cables, and security smart connection cables. It is a production-oriented enterprise that participates in drafting national standards and is a national high-tech enterprise, Zhejiang Province specialized and innovative enterprise, Zhejiang invisible champion (nurturing) enterprise, and a Chinese well-known trademark enterprise, with more than 30 countries' safety certifications. According to information provided by the investee and target company, the investee holds approximately 42.8% equity rights of the target company. The company believes that if the potential investment and acquisition transaction is completed, it is expected to enrich the company's existing business and allow the company to enter other high-tech industries in China, creating synergies with existing business. The company believes that if the potential investment and acquisition transaction is completed, it will immediately introduce new sources of income for the company and further strengthen the company's revenue and customer base, in line with the overall interests of the company and its shareholders.