CONFIDENCE IN (01967): Intend to acquire the remaining 30% equity in Chongqing Xinken Technology for approximately 40 million yuan.

CONFIDENCE IN (01967) announced on October 17, 2025, that the buyer (Shenzhen CONFIDENCE IN Electronics Co., Ltd., a wholly-owned subsidiary of the company) intends to acquire 30% equity of the target company (Chongqing Xinken Technology Co., Ltd.) from the seller (Mr. Chen Wensheng) for a total consideration of RMB 40 million. The target company is mainly engaged in surface mount technology processing services, which is a core part of the electronic manufacturing services industry. Surface mount technology involves the automatic installation and soldering of electronic components onto printed circuit boards through precision manufacturing processes, which is crucial for the production of electronic devices and components. As of the date of this announcement, the company holds 70% equity in the target company. Upon completion, the company will hold 100% equity in the target company, and the financial performance of the target company will continue to be consolidated into the company's financial statements. The board of directors believes that the acquisition is in line with the group's strategy, as obtaining full ownership will (i) enhance the group's flexibility in technology development, strategic planning, and production resource allocation; (ii) allow the group to maximize returns from the target company's proven profitability (net profit margin of approximately 19.4% for the fiscal year 2024) without considering minority shareholder interests and strengthen the group's overall financial performance; (iii) streamline decision-making processes and unify management control, especially in strategic planning and market expansion. Through comprehensive resource integration and knowledge sharing within the group's ecosystem, the group will be able to more efficiently seize market opportunities in the electronic manufacturing services industry through the target company's operations and business development, thereby enhancing its own strength and pursuing more business opportunities.