HG SEMI (06908) intends to acquire a 12.98% stake in Shenzhen Gan Hong for a total of 114.2 million Hong Kong dollars.

HG SEMI (06908) announced that on December 1, 2025, the company entered into agreements with Seller A (New Rainbow Developments Limited, Rosyfeild Limited, Wise Spring Global Limited). According to the agreements, Seller A conditionally agreed to sell, and the company conditionally agreed to purchase, the sale shares A (equivalent to 100% of the issued share capital of the target company A Join Gain HK Limited, with the target company A holding approximately 8.34% of Gaohong Group of Shenzhen), for a total consideration of HK$73.38 million; and The company also entered into an agreement with Seller B (Red Mont Global Limited). Seller B conditionally agreed to sell, and the company conditionally agreed to purchase, the sale shares B (equivalent to 100% of the issued share capital of the target company B Red Mont HK Limited, with the target company B holding approximately 4.64% of Gaohong Group of Shenzhen), for a total consideration of HK$40.81 million. The consideration for A will be paid by the company through the issuance and distribution of a total of 147 million shares to Seller A and/or their respective nominees as full payment for the shares, while the consideration for B will be paid by the company through the issuance of acceptance notes to Seller B. The completion of these agreements is not subject to the completion of the other agreement and is subject to approval by independent shareholders at a special general meeting with the relevant ordinary resolution. As of the release date, Swift Power (an indirect wholly-owned subsidiary of the company), the employee shareholding platform, target company A, target company B, Taizhou Huirong Jianeng Venture Investment, and Orchid Enterprises own approximately 60.30%, 19.49%, 8.34%, 4.64%, 5.10%, and 2.13% equity, respectively. After completion, the target companies will become indirect wholly-owned subsidiaries of the company, with Gaohong Group of Shenzhen being held by the group, the employee shareholding platform, Taizhou Huirong Jianeng Venture Investment, and Orchid Enterprises owning approximately 73.28%, 19.49%, 5.10%, and 2.13% equity, respectively, and therefore will still be indirect non-wholly-owned subsidiaries of the company. The company believes that now is the appropriate and correct time to acquire minority shareholder interests in Gaohong Group of Shenzhen to seize the growth potential and future prospects of the group.