HUHUTECH International Group Inc. Expands into Europe with Acquisition of German Subsidiary

Rhea-AI Summary

HUHUTECH International Group (Nasdaq: HUHU), a provider of factory facility management and monitoring systems, has acquired Huhu Technologies Deutschland GmbH for €25,000 (approximately US$28,930). The acquisition, completed on May 7, 2025, represents HUHUTECH's strategic entry into the European market.

The newly acquired German subsidiary will focus on developing high-purity gas and chemical production systems for the German semiconductor industry, offering customized system design, installation, and after-sales support. CEO Yujun Xiao emphasized Germany's importance as a semiconductor industry powerhouse and gateway to broader European markets.

Positive

• None.

Negative

• Acquired company had no prior operations or existing business
• Significant effort required to establish operations from scratch in new market
• Potential challenges in penetrating established German semiconductor market

Insights

International Business Development Strategist

HUHUTECH's €25,000 German acquisition establishes European foothold but represents minimal financial investment with no immediate revenue impact.

HUHUTECH's acquisition of Huhu Deutschland for €25,000 ($28,930) represents a strategic entry into the European semiconductor market rather than a significant financial transaction. The deal's extremely modest price tag reflects that the acquired entity had "no actual operations" prior to purchase, effectively making this a market entry strategy rather than a traditional acquisition of operating assets.

The company is clearly pursuing a greenfield expansion strategy in Europe, using the acquisition as a legal and operational framework to establish presence in Germany's semiconductor industry. This approach minimizes initial capital outlay while providing HUHUTECH with a fully-owned European subsidiary through which to pursue business development.

Germany represents a strategic choice for European expansion due to its position as a manufacturing powerhouse with a developed semiconductor ecosystem. The acquisition creates a potential gateway for HUHUTECH to access the broader European market from a respected industrial base.

However, investors should recognize this represents the very beginning of a market development process. With no existing operations, Huhu Deutschland will need to build its client base, establish operational capabilities, and demonstrate its ability to compete in the sophisticated European semiconductor market. The subsidiary will focus on high-purity gas and chemical production systems, leveraging HUHUTECH's existing expertise in factory management systems.

The three-month gap between agreement (March 7) and announcement (June 26) following a May 7 completion suggests a measured approach to market communication rather than rushing to highlight the expansion.

Wuxi, China, June 26, 2025 (GLOBE NEWSWIRE) -- HUHUTECH International Group Inc. (Nasdaq: HUHU) (the “Company” or “HUHUTECH”), a professional provider of factory facility management and monitoring systems, today announced that on March 7, 2025, it entered into a share purchase agreement (the “Agreement”) with Mr. Zhi Zhang to acquire 100% of the issued equity interests of Huhu Technologies Deutschland GmbH (“Huhu Deutschland”). This acquisition is a part of the Company’s global growth strategy to establish HUHUTECH’s presence in the European market for high-purity gas and chemical production systems in the semiconductor industry. The acquisition was completed on May 7, 2025.

Pursuant to the Agreement, HUHUTECH agreed to acquire 100% of the equity interests of Huhu Deutschland from its sole shareholder, Mr. Zhi Zhang, for a total consideration of €25,000.00 (approximately US$28,930.00).

Following the acquisition, Huhu Deutschland became HUHUTECH’s wholly owned subsidiary in Germany. Huhu Deutschland aims to focus on developing the high-purity gas and chemical production systems market within the German semiconductor industry. With a localization strategy, Huhu Deutschland will offer comprehensive, end-to-end services tailored to the needs of local clients including customized system design, precise installation and commissioning, and after-sales maintenance and support. Prior to the acquisition, Huhu Deutschland had no actual operations.

Mr. Yujun Xiao, Chief Executive Officer of HUHUTECH, commented, “We are excited to establish our presence in Germany, a strategic part of our globalization journey. As a powerhouse in the global semiconductor supply chain, Germany represents a strategic market opportunity for HUHUTECH. Our entrance into the German market will not only enable us to unlock local market potential but also establish a gateway to the broader European semiconductor industry. Leveraging our proven technical expertise and commitment to localized service, Huhu Deutschland will deliver full-process, one-stop solutions to support the growth of our German clients. Looking ahead, we remain committed to executing our international strategy and creating long-term value for our stakeholders while contributing to the advancement of the global semiconductor industry.”

About HUHUTECH International Group Inc.

HUHUTECH International Group Inc. is a professional provider of factory facility management and monitoring systems. Through its subsidiaries in China, Japan, the United States, and Germany, HUHUTECH designs and provides customized high-purity gas and chemical production system and equipment. The Company's products mainly include high-purity process systems (HPS) and factory management control systems (FMCS), which effectively increase operation efficiency by using standardized module software. The modularity of HUHUTECH's software solution reduces the errors caused by frequent updates of the program. As a nationally recognized brand, HUHUTECH serves major players in the pan-semiconductor industry. Its products and services are widely used by semi-conductor manufacturers, LED and micro-electronics factories, as well as some pharmaceutical, food and beverage manufacturers. For more information, please visit the Company's website: ir.huhutech.com.cn.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," or other similar expressions in this prospectus. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the U.S. Securities and Exchange Commission ("SEC").

For more information, please contact:

HUHUTECH International Group Inc.
Investor Relations Department
Email: ir@huhutech.com.cn

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

FAQ

How much did HUHUTECH (HUHU) pay for the German acquisition?

HUHUTECH paid €25,000 (approximately US$28,930) to acquire 100% equity interests in Huhu Technologies Deutschland GmbH.

When did HUHUTECH complete the acquisition of its German subsidiary?

The acquisition was completed on May 7, 2025, following a share purchase agreement signed on March 7, 2025.

What will HUHUTECH's German subsidiary focus on?

Huhu Technologies Deutschland GmbH will focus on developing high-purity gas and chemical production systems for the German semiconductor industry, offering customized design, installation, and after-sales support.

Who was the seller of Huhu Technologies Deutschland GmbH?

Mr. Zhi Zhang was the sole shareholder who sold 100% of the equity interests in Huhu Technologies Deutschland GmbH to HUHUTECH.

What services will HUHUTECH offer in the German market?

HUHUTECH will offer comprehensive end-to-end services including customized system design, installation and commissioning, and after-sales maintenance and support for the semiconductor industry.