Securities Code: 301389 Securities Abbreviation: Longyan Electronics Announcement No.: 2026-038
Longyan Electronics (Kunshan) Co., Ltd.
Announcement on Proposed Sale of Assets and Deregistration of Subsidiary Vietnam De You
The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and that there are no false records, misleading statements, or material omissions.
Longyan Electronics (Kunshan) Co., Ltd. (hereinafter referred to as the "Company," "this Company," or "Longyan Electronics") at its 24th meeting of the Second Board of Directors held on July 28, 2026, deliberated and approved the "Proposal on the Proposed Sale of Assets and Deregistration of Subsidiary Vietnam De You." It was agreed to sell part of the assets of its holding subsidiary DWELL TECHNOLOGY COMPANY LIMITED (hereinafter referred to as "Vietnam De You") and legally deregister its corporate entity.
This transaction does not constitute a related party transaction as defined by the "Shenzhen Stock Exchange Stock Listing Rules," nor does it constitute a major asset restructuring as defined by the "Measures for the Administration of Major Asset Restructuring of Listed Companies." This transaction falls within the scope of the Board of Directors' approval authority and does not require submission to the Company's shareholders' meeting for deliberation and approval.
The relevant matters are hereby announced as follows:
I. Overview of the Proposed Sale of Assets and Deregistration of Vietnam De You
Following the completion of the acquisition of 70% equity in Suzhou De You New Material Technology Co., Ltd., in order to further optimize the Company's overall resource allocation, reduce management costs, improve management efficiency and control capabilities, and in conjunction with the actual operating and management conditions in Vietnam, the Company plans to effectively integrate resources between Vietnam De You and Longyan Electronics (Vietnam) Co., Ltd. (hereinafter referred to as "Vietnam Longyan"). The die-cutting business and part of the die-cutting equipment of Vietnam De You will be integrated into Vietnam Longyan. The Company now proposes to sell assets such as land, factory buildings, and other machinery and equipment of Vietnam De You, and to legally deregister its corporate entity. The Board of Directors is requested to authorize the management to negotiate and determine the transaction price based on the appraised value and market conditions, supply and demand, and other factors, sign relevant agreements related to the sale of the subject assets, and handle the transfer of asset sale, liquidation, and deregistration. Upon completion of the sale of assets and deregistration of Vietnam De You, the Company will no longer hold equity in Vietnam De You, and Vietnam De You will no longer be included in the Company's consolidated financial statements.
II. Basic Information of the Proposed Assets for Sale