SMART DIGI TECH plans to acquire no less than 51% equity in Shanghai Mingxiao Information Technology

According to the announcement from SMART DIGI TECH (01159), on August 20, 2025, the company signed a non-binding letter of intent for a potential acquisition with a potential seller. Based on this letter of intent, the company intends to pursue a potential acquisition of no less than 51% equity in Shanghai Mingxiao Information Technology Co., Ltd. (the target company, collectively referred to as the "target group" along with its subsidiaries). The target company is a national specialized and innovative "little giant" high-tech enterprise in the field of transportation artificial intelligence and smart vehicle networking, composed of the National SME Development Fund, several well-known enterprises, and employee shareholding. The target company's business covers more than 40 cities nationwide (including Beijing, Shanghai, Guangzhou, and Shenzhen) as well as Hong Kong and overseas countries such as Israel and Thailand. The target company is led by academicians and experts from the Chinese Academy of Sciences in the fields of trusted data security, artificial intelligence, big data, and vehicle-road collaboration, focusing on the digitalization of transportation artificial intelligence, the new generation of information technology for transportation infrastructure (safety, innovation, and digitalization), and the industrial internet of transportation and energy, with core edge computing technology. The target company has accumulated a series of qualifications and honors, participated in the formulation of national industry standards for urban rail transit and new generation smart trains, and obtained certifications such as the CMA/CNAS certification from the State Grid PAL organization, IRIS international railway industry standard certification, international safety level SIL2 certification, and the highest level certification of CMMI-5 software maturity model; it has been recognized as a municipal enterprise technology center in Shanghai, as well as an innovation/high-tech/dual-software enterprise in Shanghai. The board of directors believes that the potential acquisition will enable the group to develop new business in the field of transportation artificial intelligence and smart vehicle networking, and given the rapid development of transportation artificial intelligence and rail transit both nationally and globally, the business's growth potential is significant. On the other hand, it can expand the group's customer base and enhance the visibility of the listed company. The board believes that if the potential acquisition is realized, it will effectively strengthen the group's core competitive barriers and create strategic leverage and returns for long-term shareholder value enhancement