SOUTH CHINA FIN (00619) established a joint venture company to enter the overseas market for advanced technology security and riot control equipment.

SOUTH CHINA FIN (00619) announced that on November 6, 2025, its indirect wholly-owned subsidiary Li Hui Investment Limited (Li Hui) entered into a memorandum of understanding with Chinese citizen Mr. Zhu Mapao (who is the major shareholder and director of Beijing Zhongan Hangxin Technology Co., Ltd.) regarding the proposal to establish a joint venture company in Hong Kong, China. The parties entered into a shareholders' agreement on April 29, 2026 to establish a joint venture company named "Nanhua Lei Yin International Security Group Limited." The issued share capital of the joint venture company is 100 Hong Kong dollars. According to the shareholders' agreement, the joint venture company is owned 50% by Li Hui, 30% by Mr. Zhu Mapao, and 20% by Ms. Liu. The joint venture company will mainly engage in the following businesses: (1) promoting and selling security products with non-traditional, non-contact, and non-lethal characteristics to the global market, including (i) sound wave deterrent products, such as high-decibel sound and light emitting devices that can be installed on vehicles, ships, airplanes, or fixed installations to forcibly drive away and prevent dangerous approaches; (ii) drones, including high-rise building fire drones, perimeter inspection sound wave deterrence drones, emergency rescue tethered drones, and night patrol infrared drones; (iii) security products, including radio interference resistance products and radio rescue products; and (iv) new materials for the above products; (2) providing technical support and solutions to overseas customers for security products; and (3) researching and developing security products to enhance functionality and quality to meet overseas market demands. The joint venture company provides a platform to integrate resources and capabilities to: enter the overseas advanced technology security and riot equipment market, seize the growth opportunities brought by the global demand, strengthen resource sharing and operational synergies with its partners, consolidate the group's competitive position through combined expertise, networks, and technologies, diversify the group's business portfolio, and explore new sources of revenue.