LONGCHEER (09611.HK): Completes Acquisition of 60% of Suzhou Anruike; Profit Guarantees of RMB 130mn/160mn/190mn

NewTimeSpace News: On 20 October 2026, Shanghai Longcheer Technology Co., Ltd. (the "Company") announced further information on its discloseable transaction involving the acquisition of 60% equity interest in Suzhou Anruike Information Technology Co., Ltd. (the "target company"). The board announced that all conditions precedent under the equity transfer agreement (as amended by the supplemental agreement) had been satisfied and that registration of the equity transfer with the relevant local market supervision authority and the corresponding amendments to the target company's articles of association had been completed; accordingly, completion took place on 19 October 2026.

The announcement disclosed that, following completion, the target company is held as to 60.00% directly by the Company, 11.39% by Mr. Chen, 10.27% by Mr. Ding, 8.29% by Ms. Li, 5.00% by the incentive platform, 3.63% by Mr. Ren and 1.41% by Suanwang Investment. As of the announcement date, the target company has become a non-wholly-owned subsidiary of the Company and its financial results have been consolidated into the Group's financial statements. The target company, a limited liability company established in China on 13 December 2011, is a data centre infrastructure product and solution provider focusing on the R&D, manufacturing and system integration of data centre infrastructure and critical equipment, with core products including server racks, power distribution units (PDUs), busways and low-voltage distribution equipment; it is a national high-tech enterprise.

The Company stated that the guaranteed results rise from RMB 130 million for the year ending 31 December 2026 to RMB 160 million and RMB 190 million for the years ending 31 December 2027 and 2028, representing year-on-year increases of approximately 23.08% and 18.75% and broadly in line with expected industry growth over the same period. The parties determined the guaranteed results through arm's-length negotiation by reference to the industry's development trends and expected growth trajectory, the target company's historical financial and operating results, existing business scale, customer base and order backlog. On the industry, growth in the target company's sector is driven by computing demand arising from the development and application of AI large models and by national policies supporting computing infrastructure; global data centre capacity demand is expected to rise from approximately 82 GW in 2025 to approximately 219 GW in 2030, a compound annual growth rate of approximately 21.7%. The target company's revenue, profit before tax and profit after tax for 2025 grew approximately 115.81%, 55.58% and 18.74% year on year respectively.