Wingtech Communications Co., Ltd. (“Wingtech Communications”), one of the wholly-owned subsidiaries of Wingtech Technology Co., Ltd. (600745) and Luxshare Communication (Shanghai) Co., Ltd. (“Luxshare Communication”) entered into a share transfer agreement on January 23, 2025, pursuant to which, Wingtech Communications shall sell 100% of the equity interest in three wholly-owned subsidiaries related to its ODM business (collectively referred to as the “Target Companies”) to Luxshare Communication. The transfer price for the equity in the Target Companies is set at RMB 616 million, with the final price to be determined based on the audit and asset evaluation results. Additionally, Luxshare Communication shall cause the three Target Companies and their wholly-owned subsidiaries to settle payables to Wingtech Communications and its affiliates, estimated at RMB 1.0805 billion.

In December 2024, Wingtech Technology Co., Ltd. was placed on the U.S. Department of Commerce’s Entity List. After assessing the actual impact of this event on its ODM business, Wingtech Communications entered into a letter of intent for sale with Luxshare Communication on December 31, 2024, regarding the transfer of the equity interest in nine subsidiaries and certain assets relating to the ODM business. After the consummation of this transaction, the relevant parties will continue to proceed with the contemplated transactions under the aforesaid letter of intent.

Fangda was the deal counsel to Wingtech Technology in this transaction, advised Wingtech Technology on drafting and negotiation of the transaction documents under an extremely tight timeline, and assisted in signing and closing of the transaction. The Fangda team was led by partner Norman Zhong, with key team members including partner Zhang Hao, and associates Wyatt Zhang, Li Jingyi, Cristy Du and Lynn Zhang. Partners Helen Fan and Eric Yan, as well as legal consultant Alexandra Lu also provided their support to this transaction.