TIANGONG INT'L (00826): Tiangong New Materials acquires equity of Tiangong Tools, increasing stake to approximately 90.06%

TIANGONG INT'L (00826) announced that, after consultations with various parties, on April 1, 2025, (1) Wah Tsz Shing Tung, Tung Gong New Material, Tung Gong Hong Kong, the Company, Tung Gong Precision, and Tung Gong Tools entered into an agreement for the transfer of Wah Tsz Shing Tung's equity interest in Tung Gong Tools to Tung Gong New Material (as the buyer) at a price of RMB 35.086 million for 0.35% ownership; (2) Wah Tsz Wai Chi, Tung Gong New Material, Tung Gong Hong Kong, the Company, Tung Gong Precision, and Tung Gong Tools entered into an agreement for the transfer of Wah Tsz Wai Chi's equity interest in Tung Gong Tools to Tung Gong New Material (as the buyer) at a price of RMB 35.086 million for 0.35% ownership; and (3) Lok Tung Wah Tsz, Tung Gong New Material, Tung Gong Hong Kong, the Company, Tung Gong Precision, and Tung Gong Tools entered into an agreement for the transfer of Lok Tung Wah Tsz's equity interest in Tung Gong Tools to Tung Gong New Material (as the buyer) at a price of RMB 35.0827 million for 0.35% ownership. After the completion of these equity transfers, the Company will increase its ownership through Tung Gong New Material and Tung Gong Hong Kong from 89.00% to approximately 90.06%. Tung Gong Tools will continue to be an indirect non-wholly-owned subsidiary of the Company, and its performance will continue to be consolidated into the Group's performance. With the current reduction in financing costs and in order to simplify the equity structure of Tung Gong Tools while retaining long-term investment intentions, the Company has agreed to requests for relevant share transfers. Therefore, the Group has entered into share transfer agreements with the investment parties intending to sell their equity in Tung Gong Tools (Wah Tsz Shing Tung, Wah Tsz Wai Chi, and Lok Tung Wah Tsz) to transfer their ownership in Tung Gong Tools.