APEX ACE HLDG (06036): Intends to acquire 18% stake in Data Star Inc. for HK$65.29 million, increasing its stake to 90%.

APEX ACE HLDG (06036) announced that on January 30, 2026, the buyer (a wholly-owned subsidiary of the company, Apex Team Limited) intends to purchase 18% of the issued share capital of the target company Data Star Inc. from Mr. Bai Yilin for a total consideration of HK$ 65.296 million, partially to be paid by the buyer in cash and partially through the issuance of promissory notes. Upon completion, the buyer's equity in the issued share capital of the target company will increase from 72% to 90%. Therefore, the target company will be recognized as a subsidiary in which the company indirectly holds a 90% equity interest. The financial performance of the target company has already been and will continue to be consolidated into the group's financial statements. The target company is an investment holding company that directly and indirectly owns five subsidiaries, including: Huijia Electronic Technology Co., Ltd.; Zhenqi International Co., Ltd.; Zhenqi International (East China) Co., Ltd.; Jinziyang Technology (Hong Kong) Co., Ltd.; and Shenzhen Zhenqi Electronics Co., Ltd. The Board is aware of the significant structural growth and differentiation of the global semiconductor market, with AI-driven high-performance computing demand driving core growth, while the traditional fields of consumer electronics and automotive electronics are gradually recovering. This upward trend is mainly driven by the growth in demand for logic chips and memory, with both areas benefiting from advancements in AI, cloud infrastructure, and high-end consumer electronics products, and is expected to achieve double-digit growth. Specifically, the demand for logic and storage chips continues to be strong due to the influence of AI. Given the positive industry outlook, the target group has made adequate preparations to seize the massive demand for such products worldwide and is expected to significantly benefit from the development trends in AI, cloud infrastructure, and high-end consumer electronics. This demand growth has had a positive impact on the group's financial performance, as evidenced in the target group's performance in the first half of 2025. Furthermore, due to personal business reasons, the seller has expressed an intention to sell its equity in the target company. Considering the favorable industry outlook and the expected financial contribution the target group will bring to the company, the Board believes that the acquisition will strengthen and consolidate control over the management and operations of the target group, potentially increasing the earnings attributable to the company's shareholders.