China Financial Development (03623): Proposed acquisition of GNW Capital Limited's 45% shareholding increase to 96%

According to Zhitong Finance App, China Financial Development (03623) announced that on August 31, 2026, China Integrated (Hong Kong), a wholly-owned subsidiary of the company, plans to acquire 45% of the issued share capital of the target company (GNW Capital Limited) from the seller Zeng Guoqiang at a cost of RMB 34.253 million. The price shall be settled by the company allotting and issuing 78.78 million consideration shares to the seller (or its nominee) at an issue price of HK$0.5 per share in accordance with special authorization to be sought at the special shareholders' meeting.

The total number of consideration shares was 78.78 million shares, accounting for approximately 12.49% of the Company's current issued share capital at the date of this announcement, and approximately 11.10% of the Company's expanded issued share capital through allotment and issuance (assuming that no other shares will be issued or repurchased before completion).

The target company is currently a non-wholly-owned subsidiary of the company, and the company indirectly holds 51% of the shares. Upon completion, China Integrated (Hong Kong) will hold 96% of the target company's issued share capital, while the remaining 4% of the issued share capital will continue to be held by GNW Power Limited (the target company's current shareholder).

The target company mainly sells energy storage products in Australia, South Africa, Sweden and the United Kingdom. The target company's business is carried out in the form of a project. The order is first placed with the target company, which then procures the required raw materials from China. There are no long-term distribution agreements or strategic agreements, which helps reduce the risk of inventory backlogs.

The target company has been a subsidiary of the company since September 2023 and is engaged in the sale of energy storage products. The seller has extensive experience and expertise in the energy storage industry. Previously, the company relied on sellers to expand its market share in the industry. In recent years, the target company's business has become increasingly mature. In view of the strong global demand for energy storage solutions driven by artificial intelligence (AI) applications and the wider power industry, the company plans to further expand its market share and strengthen its presence in overseas markets (including Australia, South Africa and Sweden).