CH FRONTIER TEC (01661) intends to acquire 49% equity of Ningbo Qihe New Materials Technology Co., Ltd. for 19.6 million yuan.

CH FRONTIER TEC (01661) announced that on April 23, 2026 (after the trading hours of the Stock Exchange), the buyer (a wholly-owned subsidiary of the Company) (as the buyer) entered into a sales agreement with the seller Shenzhen Bochi Electronics Co., Ltd. (as the seller). The seller has conditionally agreed to sell, and the buyer has conditionally agreed to acquire the sale equity (ie. 49% of the equity of the target company Ningbo Qihe New Material Technology Co., Ltd.) for a total price of RMB 19.6 million (approximately HKD 22.148 million). As of the date of this announcement, the target company is wholly owned by the seller. Upon completion, the Company will hold 49% of the equity of the target company through the buyer, and the target company will not become a subsidiary of the Company, and the financial performance of the target company will not be consolidated into the Company's financial statements. The Company is currently taking strategic measures to diversify its business model beyond its core event operation. Specifically, entering the functional materials market will allow the Company to leverage its existing business capabilities (such as logistics, customer management, and contract negotiation) while developing new capabilities in product specifications, quality assurance, and regulatory compliance. The Company intends to continue its event operation as its core business while actively developing the functional materials trading division. Through adopting a dual-focus strategy, the Company aims to reduce reliance on any single source of revenue and create a more stable, sustainable income stream throughout economic cycles. The acquisition is part of the Company's strategy to achieve this goal, with the target company primarily engaged in functional materials research, production, and trading, ultimately seeking to deliver improved returns and greater value for shareholders.