TRIGIANT (01300.HK): Acquires Qinghai Zhongli Optical Fibre for RMB 455 Million to Expand Upstream Capacity

NewTimeSpace News: On 20 September 2026, Trigiant Group Limited (stock code: 01300) announced that, further to its announcement dated 13 September 2026 on the proposed acquisition, Jiangsu Trigiant Technology Co., Ltd., an indirectly wholly-owned subsidiary of the Company, as buyer, entered into a property rights transaction contract on 20 September 2026 with Qinghai Qingyin Project Management Co., Ltd., as seller, to acquire a 100% equity interest in Qinghai Zhongli Optical Fibre Technology Co., Ltd. for a consideration of RMB 455 million (equivalent to approximately HKD 526 million).

The 100% equity interest was offered for sale on the Chongqing Property Rights Exchange, and the consideration was determined through public bidding on that platform, representing a premium of RMB 310 million over the minimum bid price of RMB 145 million set by the seller. The buyer has paid RMB 43.5 million as a deposit, which is treated as part of the consideration; the balance of RMB 411.5 million is payable in a lump sum within five working days after the date of the contract, and the buyer must also pay a transaction service fee of 0.35% of the consideration, approximately RMB 1.59 million; the consideration will be funded by the Group's internal resources.

Under the contract, the buyer has undertaken to unconditionally support the target company in repaying, on or before 31 December 2026 and pursuant to a civil mediation statement, its debts comprising principal, interest, default interest and penalty interest owed to an affiliate of the seller, which amounted to approximately RMB 259.4 million as at 30 June 2026; and to procure the target company to commence production of its phase-three 600-tonne optical fibre preform project within six months from the date of completion of the equity transfer registration, for which a performance bond of RMB 15 million has been paid.

The seller and its ultimate beneficial owners are independent third parties; the seller is held as to 99% by Xining Economic and Technological Development Zone Qingyin Xinyuan Light Industry Investment Fund (Limited Partnership), of which approximately 70% is ultimately owned by an entity controlled by China CITIC Group Co., Ltd., a state-owned enterprise. The target company currently has 400 tonnes of optical fibre preform capacity in production across phases one and two and 600 tonnes awaiting production in phase three, giving total capacity of 1,000 tonnes; it recorded revenue of RMB 169.10 million and profit after tax of RMB 70.57 million for the six months ended 30 June 2026, with net assets of RMB 58.30 million. The Directors consider that the acquisition will enable the Group to expand upstream into the optical fibre preform and optical fibre segments of the optical communications value chain. As the highest applicable percentage ratio exceeds 5% but is less than 25%, the acquisition constitutes a discloseable transaction and is exempt from shareholders' approval.

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