Johnson Electric Holdings (00179): Plans to make a minority investment in Wuxi Gem Intelligent Drive Technology

According to the Zhitong Finance App, Dechang Electric Holdings (00179) announced that Dechang Electric Industrial Manufacturing Co., Ltd., a wholly-owned subsidiary of the company, has concluded a number of transaction documents for minority equity investment in Wuxi Gem Intelligent Drive Technology Co., Ltd. (Wuxi Giant). Wuxi Cancer is mainly engaged in the development and manufacture of harmonic speed reducers, integrated robot joint modules and related drive technology in the field of robot applications.

The cost of this investment will be fully covered by the Group's internal resources and will not have a significant impact on the Group's financial position, cash flow, profit or balance sheet. The investment will not be completed until the transfer of shares has been registered with the relevant Chinese authorities. After the transaction is completed, the group will hold less than 5% of the expanded shares of Wuxi Cancer's issued share capital. The Group will not exercise control or significant influence over the operation or financial policies of Wuxi Cancer, nor will it nominate any directors to join the board of directors of Wuxi Cancer. Therefore, the financial results of Wuxi Cancer will not be comprehensively included in the Group's financial statements, and the investment is expected to be recorded as profit and loss financial assets at fair value.

The Board believes that the investment is in line with the Group's long-term development strategy in the field of robotics. Wuxi Cancer's capabilities in harmonic speed reducers and related drive technology complement the Group's existing expertise in drive systems, motors, controllers and precision manufacturing. The investment is expected to enable the Group to gain a deeper understanding of emerging robotics technology and the broader robot ecosystem.