GLONGHUI, September 11 | Huaxun (00833.HK) announced that on September 11, 2024, the company entered into a non-legally binding memorandum of understanding with Rainno Holding PTE Limited (Rainno, a company incorporated in the Republic of Singapore) relating to the potential acquisition of 51% indirect interests in Momentum Industrial (Vietnam) Limited (target company, a limited company incorporated in Vietnam) at a proposed cost of 2 million dollars.

The target company has yet to start a business, but its proposed business will be in electronics manufacturing in Vietnam. According to the plan, all of the target company's shares will be purchased through a newly formed holding company (interested buyer) incorporated in Singapore, and the interested buyer will own 51% and 49% of the shares of the Group and Rainno, respectively. Currently, Momentum Innovation Limited (Momentum Innovation) owns 100% of the target company's shares, while Rainno owns 80% of MomentMinNovation's shares.

The board of directors believes that if the potential acquisition is realized, it will help the Group expand its electronics manufacturing base and business operations in Vietnam to better meet customer needs.