Shanghai Electric Group (02727) subsidiary Shenzhen Yinghe Technology intends to acquire 100% of Ang Hua Automation's shares.

Shanghai Electric Group (02727) announced that on June 17, 2026, the board of directors reviewed and approved the relevant resolutions, agreeing that Shenzhen Yinghe Technology, a non-wholly owned subsidiary of the company, will acquire 100% of the shares of Ang Hua Automation through a non-public agreement transfer. The transaction price is based on the valuation of Ang Hua Automation's shareholders' equity value as of December 31, 2025, with a total transaction amount of RMB 204,348,400. Shenzhen Yinghe Technology will buy 58.02% of the shares from Electrical Holdings for RMB 118,562,900, and the remaining 41.98% from eight other shareholders for a total of approximately RMB 85,785,500. After the share transfer is completed, Shenzhen Yinghe Technology will hold 100% of Ang Hua Automation. Ang Hua Automation is technically mature and experienced in the field of lithium battery equipment. After this acquisition, in the field of lithium battery equipment, Ang Hua Automation's flexible and intelligent backend integration technology can complement Shenzhen Yinghe Technology's high-precision and high-stability frontend equipment, enabling seamless connection from cell manufacturing to module PACK full-process flow, and building equipment supply capabilities covering the entire lithium battery manufacturing process. This not only provides a one-stop solution for downstream customers but also effectively improves the consistency, stability, and intelligence level of the production line, better meeting the high standards and scale requirements of customers, and helping Shenzhen Yinghe Technology seize the strategic opportunities in the new energy vehicle industry. This acquisition will accelerate the company's ability to enhance the one-stop solution capability of intelligent factories in the lithium battery sector, in line with the company's development strategy and the interests of all shareholders. This related transaction will not have any adverse impact on the company's business development, and there is no situation that harms the interests of the company and all shareholders. This acquisition will not have a significant impact on the company's production, operation, and financial condition. After this acquisition of Ang Hua Automation shares, Ang Hua Automation will be included in the company's financial statements consolidation scope. This acquisition will not constitute competition within the same industry.