Huasheng Tianchen's Subsidiary Plans to Repurchase 35.42% Equity Stake for $25 Million with Investment Income Premium of $20.6 Million

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Beijing Huasheng Tiancheng Technology Co., Ltd. (hereinafter referred to as “Huasheng Tiancheng”) announced on March 14 that its controlling subsidiary, Automated Systems Holdings Limited (hereinafter “ASL”), through its wholly owned subsidiary ASL Security Solutions Limited (hereinafter “ASS”), plans to sell all 35.42% equity stake in its associate company i-Sprint Holdings Limited (hereinafter “ISH”) for USD 24,980,526. After the transaction is completed, ASS will no longer hold shares in ISH.

Key transaction details: premium over USD 20 million, full one-time payment

The announcement states that the target of this transaction is the 35.42% equity stake in ISH held by ASS, involving cross-border trading. The transaction price is set at USD 24,980,526, which is about USD 4.4 million above the book cost of this equity, representing a premium of USD 20.6 million.

The pricing for this transaction is based on the “Share Repurchase Agreement” and negotiated by all parties, using ASS’s 35.42% equity interest in ISH valued at USD 28.25 million as the basis, minus approximately USD 3.27 million paid to ISH management as per prior agreement. Huasheng Tiancheng states that the pricing follows the principles of fairness and justice, and will not harm the interests of the company or small and medium investors.

Counterparty and target company overview: ISH is a holding company with net profit of USD 26.72 million in 2025

The buyer, ISH, was established on August 4, 2016, registered in the Cayman Islands, with main office in Singapore, registered capital of SGD 16,247, and its main business is as a holding company in the “Holding Company Services” industry. Its unaudited financials for 2025 show total assets of USD 63,800, liabilities of USD 32,100, owners’ equity of USD 31,600, operating income of USD 2,800, and net profit of USD 26.72 million.

Regarding equity structure, before this transaction, ASS held 35.42% of ISH, Great Ally Investment Limited held 28.41%, Hu Lian Kui held 26.53%, and other shareholders held a total of 9.64%. After the transaction, ISH will repurchase and cancel 338.612 million shares (accounting for 99.9999% of the original share capital), with the remaining 3 shares held by three management shareholders (Ductch Ng Seng Leong, Simon Leung Tat Kwong, Albert Ching Wai Keung), each holding 1 share, representing 33.33% each, to facilitate subsequent cancellation of ISH.

Board of Directors has approved; no related-party transaction or major asset restructuring

Huasheng Tiancheng held a second extraordinary board meeting on March 12, 2026, where all directors approved the transaction with 9 votes in favor, 0 against, and 0 abstentions. This transaction does not constitute a related-party transaction or a major asset restructuring under the “Administrative Measures for Major Asset Restructuring of Listed Companies,” and does not require approval at the shareholders’ meeting.

Impact on the company: focus on AI core business, enhance investment returns

Huasheng Tiancheng states that this transaction is part of the company’s overall strategic plan to improve asset operation efficiency. ASL will receive USD 24.98 million from this deal, generating good investment returns, which will help the company focus resources on expanding its AI main business, increase shareholder returns, and ensure rational and efficient resource allocation.

The announcement also notes that the transaction still requires the signing of agreements, payment of funds, and registration of change of business registration. During implementation, unforeseen or force majeure factors may affect progress, and the final execution and completion time are uncertain. The company will continue to monitor progress and fulfill its information disclosure obligations.

(Source: Beijing Huasheng Tiancheng Technology Co., Ltd. “Announcement on the Proposed Repurchase of Shares by the Invested Company”)

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Editor: Xiao Lang Kuai Bao