Sun.King Technology (580.HK, the “Group”) announced on July 13, 2025, that it has entered into a transaction involving the deemed disposal of equity interest in Sun.King Pcific Semiconductors Technology (Zhejiang) Co., Ltd (SwissSEM China) and the acquisition of equity interest in Hunan Hong’an Microelectronics Co., Ltd . Key details are as follows:

l   On July 11, 2025, Sun.King Pcific Semiconductors Technology (Zhejiang) Co., Ltd. and its existing shareholders formally signed a capital increase agreement with Chuangxin Cloud (Xiamen) Technology Investment Co., Ltd., Chongjun Technology Co., Ltd., Harbour Asia Capital Co., Ltd., and Xiexin Technology Co., Ltd. (collectively, the “Investors”).

l   Under the agreement, Sun.King Pcific Semiconductors Technology (Zhejiang) Co., Ltd will increase its registered capital by USD 4.2061 million. The Investors will subscribe for the newly issued shares through the contribution of 100% equity interest in Hunan Hong’an, and will hold an aggregate of 9% of the enlarged equity in Sun.King Pcific Semiconductors Technology (Zhejiang) Co., Ltd.

l   Following the transaction, the registered capital of Sun.King Pcific Semiconductors Technology (Zhejiang) Co., Ltd will increase from USD 42,528,706 to USD 46,734,842. The Group’s equity interest in Sun.King Pcific Semiconductors Technology (Zhejiang) Co., Ltd will be reduced from approximately 70.54% to 64.19%. This change will not affect the Group’s control over Sun.King Pcific Semiconductors Technology (Zhejiang) Co., Ltd, which will remain a subsidiary of the Group.

The Group’s management believes that Sun.King Pcific Semiconductors Technology (Zhejiang) Co., Ltd, which specializes in the research, development, production, and sales of IGBT and SiC MOSFET devices, requires continuous innovation, highly skilled technical teams, and stable long-term supply chain support to sustain its growth. Meanwhile, market expansion cycles are relatively long, adding additional operating pressure. Hunan Hong’an, on the other hand, focuses on R&D and application technology of power devices, with products including low-, medium-, and high-voltage MOSFETs, as well as microcontrollers.

Through this equity exchange and capital increase, Sun.King Pcific Semiconductors Technology (Zhejiang) Co., Ltd will be able to systematically integrate the resources of both parties to achieve synergies. Hunan Hong’an’s core team will significantly enhance Sun.King Pcific Semiconductors Technology (Zhejiang) Co., Ltd’s technical strength, particularly providing strong complementarity in the field of SiC technology. In addition, resource sharing across supply chains will further improve stability, while market resource integration will expand market reach and share.

The Group considers this transaction to be of strategic significance to the long-term development of Sun.King Pcific Semiconductors Technology (Zhejiang) Co., Ltd.