Yichen Group (08365) plans to issue 12.825 million shares to acquire 20% of Zhenheng Intelligence Co., Ltd.

Zhitong Finance App News, Yichen Group (08365) announced that the company signed an agreement with the seller Mr. Ye Weilin on the acquisition on September 14, 2026. According to the agreement, the Company has agreed to the acquisition, and the seller has agreed to sell shares (equivalent to 20% of the shares of the target company Zhenheng Intelligence Co., Ltd.) at a cost of HK$10 million, which will be paid by allocating and issuing 12.8205 million shares at the issue price of HK$0.78 per share. Upon completion, the target company will become an associated company of the Company.

12.8205 million consideration shares accounted for about 6.45% of the Company's issued share capital as of the date of this announcement, and approximately 6.06% of the Company's issued share capital, which was expanded after allotment and issuance of consideration shares.

The issue price of HK$0.78 per share is approximately 0.65% premium over the closing price of HK$0.775 per share reported on the Stock Exchange on September 14, 2026 (the date of agreement).

The company has been actively seeking development opportunities to diversify its business operations and revenue sources. The directors believe that the acquisition provides an opportunity for the Group to expand into vertical AI applications in the professional financial services industry.

The Board believes that AI is increasingly relevant to the professional services industry, particularly with regard to workflows involving extensive documentation, repetitive, and rule-driven. As of the date of this announcement, the target company has developed three AI engines for these workflows, namely Press AI, ESG AI, and Accounting AI. These engines have been deployed in actual customer work or pilot projects and hosted in data centers controlled by the target company.

Specifically, the directors believe that the Group's industry expertise, customer relationships and professional networking will help the target company to apply the AI engine, and that the Group is well equipped to promote the target company's solutions to existing customers and business partners facing similar large volumes of documents and compliance-driven workflows, thereby creating a potential customer base for the target company.