TIANGONG INT'L (00826) subsidiary intends to invest 3 million yuan to further subscribe for 293,900 shares of new shares in Shanghai Geze, increasing its shareholding to approximately 10.53%.

TIANGONG INT'L (00826) issued a notice that on September 3, 2025, the company's indirect wholly-owned subsidiary, Jiangsu Tiangong Investment Management Co., Ltd. (Tiangong Investment), completed the capital increase of Shanghai Geze Laser Technology Co., Ltd. (Shanghai Geze). Accordingly, Tiangong Investment agreed to subscribe for 294,400 new shares of Shanghai Geze at a total price of RMB 3 million. On March 3, 2026, based on the subscription terms of September 3, 2025, Tiangong Investment agreed to further subscribe for 293,900 new shares of Shanghai Geze at a total price of RMB 3 million, in accordance with the agreed valuation. After the completion of the further subscription, the proportion of the enlarged registered capital of Shanghai Geze held by the company through Tiangong Investment will increase from 5.56% to approximately 10.53%. Shanghai Geze specializes in intelligent laser solutions, core device design and development, manufacturing, research and development of super wear-resistant materials for laser cladding, and laser additive manufacturing services. Currently, it has research and equipment integration capabilities in laser cladding, laser spraying (including high-speed laser cladding), and 3D printing technologies. Supported by alloy powder formulation, metal microstructure analysis and evaluation technologies, as well as laser equipment selection, processes, integration, and maintenance services, it can provide comprehensive solutions based on laser processing technology to customers in various fields. Laser cladding can be used for mold repair. In the mold industry, 70% of molds can be repaired, while the mold repair market competition is scarce, and currently, there are no specialized mold repair centers. The existing services are mostly small workshop repairs that cannot meet the high-precision, intelligent repair needs (such as laser cladding, 3D printing repair). By taking the lead in establishing technological barriers (such as AI detection + laser cladding), high-end market advantages can be formed. Given that Shanghai Geze has established a mature technical system in the field of laser cladding and additive manufacturing, and has a forward-looking strategic layout in the mold service market, in order to further consolidate the strategic cooperation between both parties and strengthen industrial synergy effects, the Group has decided to make a second capital increase in Shanghai Geze. This capital increase will be mainly used to enhance the operating funds of Shanghai Geze, accelerate technological iteration and equipment investment, promote the industrialization of the intelligent mold service network, and help it quickly build a professional, large-scale, and intelligent mold repair service system, seizing the initiative in the high-end mold service market. In addition, the Group expects to leverage its customer resources through cooperation with Shanghai Geze, and to deepen service to customers through its mold service partners, in order to tap into the segment market space.