GRAPHEX GROUP (06128) subsidiary plans to acquire a 40% stake in Chuangchi for 1.5 million Hong Kong dollars to expand its presence in the electric vehicle and related downstream battery business.

GRAPHEX GROUP (06128) announced on February 3, 2026, that its wholly-owned subsidiary, Allied Apex, has entered into a purchase agreement with one of the shareholders of Chongchi, Yan Bo. According to the agreement, Allied Apex will acquire 40% of the issued share capital of Chongchi from Yan Bo for a cash consideration of HK$1.5 million. The acquisition is expected to be completed within 14 days from the date of the agreement, at which time Chongchi will be owned by Allied Apex, Yan Bo, and Wang Sheng with 58%, 21%, and 21% respectively. Upon completion, Chongchi will become an indirectly non-wholly-owned subsidiary of the company, and therefore, Chongchi Group will be consolidated in the group's financial statements. The investment in Chongchi presents a strategic and favorable opportunity for the company to establish a business presence in the high-growth electric vehicle sector and related downstream battery industry. The Board of Directors believes that the agreement and the acquisition price were negotiated fairly between the company and Yan Bo on normal commercial terms. After the completion of the acquisition, the group can consolidate its position in the electric vehicle market by increasing its stake in Chongchi Group, thus aligning with the overall interests of the company and its shareholders.