YUK WING GP (01536) intends to acquire 65% equity of Anhui Runsheng Electric Power Technology for 37.5 million yuan.

YUK WING GP (01536) announced that on June 12, 2026, the company's wholly-owned subsidiary, Shang Limited, plans to acquire 65% equity of Anhui Run Sheng Electric Power Technology Co., Ltd from Mr. Fang Haibo, for a total consideration of RMB 37.5 million. According to the purchase agreement, upon completion and subject to the terms and conditions of the agreement, each grantor will grant the buyer subscription options for the relevant share capital, with a nominal value of RMB 1.0 each, to be paid by the buyer to each grantor. The buyer may exercise all or part of the subscription options at its discretion at any time within twelve (12) months after the completion date. The total exercise price of the subscription options will be RMB 201 million (approximately HKD 23.3 million). It is reported that the target company is mainly engaged in providing storage services and renting out its investment properties to generate rental income. The target company owns a property in Hefei, Anhui Province, China, with a land area of approximately 19,972.47 square meters. The property consists of seven buildings, including (i) a six-story comprehensive building (including staff canteen and function rooms) with a total floor area of approximately 5,136.18 square meters; and (ii) six production workshops, with heights ranging from three to six stories, with a combined total floor area of approximately 24,935.98 square meters. The announcement stated that the acquisition is a strategic milestone in the group's transformation from a specialized manufacturer to a vertically integrated provider of comprehensive rock drilling solutions. Upon completion of the acquisition, the target company will become an indirect non-wholly-owned subsidiary of the company. This enables the group to significantly increase production capacity on the basis of the current leased Shunde factory, and to establish a central warehouse utilizing the target company's existing factory and storage facilities in Hefei. Through this, the group will gain over 30,000 square meters of high-quality industrial space, providing a key logistics hub in major transportation hubs in China. This move greatly enhances the resilience of the group's supply chain, enabling centralized storage and efficient distribution of proprietary rock drilling tools and heavy machinery, while reducing volatility in third-party logistics costs and ensuring specialized handling standards for essential high-precision industrial equipment, especially for larger projects such as casing and cluster drills as the group continues to expand its product portfolio.