BUTONG GROUP (06090) enters into a memorandum of understanding for the proposed acquisition of a 51% equity interest in Huizhou Longde Technology

BUTONG GROUP (06090) announces that on October 30, 2026 (after trading hours), the Company entered into a non-legally binding memorandum of understanding with an independent third party (the seller, who is the controlling shareholder of the target company) in respect of the proposed acquisition of approximately 51% equity interest in Huizhou Longde Technology Co., Ltd. (the target company, a company established in China principally engaged in the research and development, production and sale of micro special motors). Pursuant to the terms of the memorandum of understanding, the Company has the right to conduct due diligence with the full cooperation of the seller, and the seller has granted the Company an exclusivity period of four months from the date of the memorandum of understanding. The proposed acquisition of the target company is an important measure for the Group to implement its strategy of extending upward along the industry chain and upgrading to technology-driven products. The target company has a mature foundation in research and development, manufacturing and customer validation in the field of micro drive motors, and possesses a complete technical system for motors and drive control. Upon completion of the proposed acquisition (if materialized), the Group will be able to achieve independent control of core motor components, optimize supply chain risks, accelerate the research and development and commercialization of smart parenting and home technology products, and consolidate its competitive advantage in the high-end market, which is conducive to the Group's long-term development and the interests of shareholders.