TK Group Acquires Assets of Techco Silicone & Technology Co., Ltd.

As winter gives way to spring and the Year of the Golden Ox begins, the Group brings encouraging news: an agreement has been reached to acquire all assets of Techco Silicone & Technology Co., Ltd. ("Dongguan Techco"), including its design and production technology, intellectual property, technical team, production facilities, and client resources. This acquisition aims to expand the Group's technology and capacity in silicone mold and production solutions, further broadening product portfolio and market reach, and strengthening its position as a global leading one-stop injection molding solutions provider. The agreement will take effect on April 1, 2021.

Dongguan Techco specializes in precision LSR (Liquid Silicone Rubber) injection molding business, focusing on liquid silicone product development, mold design and manufacturing, silicone product production and assembly, providing comprehensive liquid silicone mold and production solutions to clients. Silicone products are widely used in optical, medical, baby products, automotive, consumer electronics, and household products sectors. Dongguan Techco possesses capabilities in silicone product design, mold development, and mass production, with advanced technology and a stable client base, enjoying a good reputation in the industry.

The Group will establish a subsidiary, "TK Techco (Dongguan) Limited" (tentative name, abbreviated as "TK Techco") as the acquiring entity responsible for LSR business operations. In terms of operational management, TK Techco will become a new business unit (BU) under the Plastic Components (TKP) and serve as the main front-end function for agile organization LSR business.

TK Techco will employ original Dongguan Techco management personnel to continue operations at the original site in Fenggang, Dongguan. After the acquisition, the Group plans to increase investment in LSR business to expand related production and business scale.

Through the Group's financial strength, client network, and corporate management capabilities, this acquisition is expected to create synergies that will drive LSR business strategy execution and the Group's long-term development while consolidating its position as a global leading one-stop injection molding solutions provider.