WAI CHI HOLD plans to spend HKD 155 million to acquire a plot of land in Luoyang Town, Boluo County, Guangdong Province, to establish core production facilities

According to the Zhitong Finance APP, WAI CHI HOLD (01305) announced that on September 15, 2025, its indirect wholly-owned subsidiary Techwide Management Company Limited intends to acquire all issued ordinary shares of Joyful Family Consultant Limited from Ms. Lu for a consideration of HKD 155 million.

It is reported that the target company mainly engages in investment holding and currently holds all equity of Letu Optoelectronics. Letu Optoelectronics is the owner of the land located in Hongda (International) Industrial Manufacturing City, Luoyang Town, Boluo County, Guangdong Province, China, with a total land use right area of approximately 86,118 square meters.

The board of directors believes that the acquisition is complementary to the group's existing LED backlight and lighting product portfolio, allowing the group to further expand its business scale and scope in LED backlight and lighting products, thereby bringing richer returns to shareholders through increased productivity and improved operational efficiency at lower costs.

The company's core business involves manufacturing LED backlights, lighting products, and semiconductor memory chips, requiring scalable production capacity to meet the growing market demand. By acquiring the land, the company will be able to establish core production facilities dedicated to integrating manufacturing, production, and related processes, reducing reliance on third-party facilities, and lowering fundamental costs such as production and operational costs. Owning the land also provides the group with flexibility, allowing its production facilities to adapt to market trends and emerging and advanced technologies and/or key businesses with high economic growth potential.

Due to the group's current production capacity being insufficient to meet customer order demands, it is necessary for the group to expand capacity based on the development of upstream and downstream markets and customer needs. In this regard, the available land use rights provide ample space for the group to expand capacity at an appropriate time as deemed by the management, accommodating new, progressive, and revenue-generating product lines. Implementing the acquisition of the land will also allow for the relocation of several assembly plants from the Shenzhen production base to this land, consolidating and ensuring smooth and streamlined operations of the production lines. Furthermore, the land will meet the group's further expansion needs for future growth. Therefore, by establishing a new production base and introducing advanced production equipment, the acquisition aims to expand the group's capacity to address the imminent capacity bottleneck issue, meet the growing market demand, and lay a solid foundation for the group's continuous expansion and business growth