On November 28, Seligia unveiled its strategic move to acquire a 71% equity interest in Kekai Electronics. This will be achieved through a combination of share issuance and cash payment, with the total transaction amounting to RMB 1.3135 billion. Concurrently, the company plans to raise up to RMB 500 million in supplementary funds. The primary objective of this acquisition is to foster synergy along the industrial chain and expand into both military and civilian sectors.

Seligia is mainly engaged in the development of embedded intelligent instrument modules for industrial automation testing. On the other hand, Kekai Electronics focuses on high-reliability microcircuit modules tailored for the military market. There exists a significant potential for synergy between the two entities, particularly in terms of product offerings, underlying technologies, and application scenarios.

From a technological standpoint, Seligia's software algorithms perfectly complement Kekai Electronics' hardware design capabilities. Together, they have already developed innovative products such as new drone drive modules, which are currently in the trial production or finalization phases.

In terms of market expansion, Kekai Electronics' military qualifications and established customer base will facilitate Seligia's entry into the military testing market. Additionally, Kekai's high-reliability products can be effectively introduced into the civilian market through Seligia's distribution channels.

Upon the successful completion of this transaction, Seligia will emerge as the majority shareholder of Kekai Electronics, holding a 71% stake. This will enable effective integration at both the business and technological levels. However, the transaction is still subject to approval from the Shanghai Stock Exchange and registration with the China Securities Regulatory Commission.