Lianhe Sowell International Group Enters into a Non-binding Term Sheet Regarding $105 Million International Funding to Establish the First AI Robot Manufacturing and R&D Base in UAE

Rhea-AI Summary

Lianhe Sowell (NASDAQ: LHSW) signed a $105 million non-binding term sheet with Excellent Capital Investments for structured senior secured credit to help build its first AI robot manufacturing and R&D base in the UAE. Total Project investment is estimated at $132.5 million, with Lianhe Sowell providing a 20% cornerstone contribution and ECI providing the remaining 80% ($105 million). The Project targets an ~18-month construction period, an annual output of several thousand AI robots, and creation of more than 2,000 high-skill local jobs. The Term Sheet is subject to due diligence, documentation, and final approval.

Positive

• $105M senior secured financing committed by ECI
• Total Project size $132.5M
• Company cornerstone stake of 20% in the Project
• Expected annual output of several thousand AI robots
• Project expected to create more than 2,000 high-skill jobs
• Planned 18-month construction timeline

Negative

• Term Sheet is non-binding and subject to due diligence and final approvals
• Lianhe Sowell to provide 20% (~$26.5M) of Project capital, a near-term cash commitment

Global Strategy Enters New Phase via Setting Up Middle East Headquarters​​

Dubai, Oct. 21, 2025 (GLOBE NEWSWIRE) -- Lianhe Sowell International Group Ltd. (the “Company”, NASDAQ: LHSW) today announced that it has signed a $105 million financing non-binding frame agreement (the “Term Sheet”) with Excellent Capital Investments (ECI), a European infrastructure investment fund. The potential proceeds will be used exclusively to establish the Company’s first artificial intelligence-powered robot manufacturing and research and development base in the United Arab Emirates (the “Project”), marking a significant step in Lianhe Sowell’s global intelligent manufacturing strategy.

Pursuant to the Term Sheet, total investment in the Project is estimated to be approximately $132.5 million. Lianhe Sowell will contribute 20% of the Project investment as cornerstone investment, while ECI will provide the remaining 80%, or $105 million in the form of structured senior secured credit support. The partnership underscores strong recognition from international capital markets of Lianhe Sowell’s technical expertise and global operational capabilities. The Term Sheet remains subject to due diligence, documentation, and final approval.

A New Chapter for Chinese High-End Manufacturing Expansion in UAE​

As a Nasdaq-listed provider of advanced manufacturing and AI solutions, Lianhe Sowell is committed to driving innovation in intelligent manufacturing, robotic automation, and AI-enabled industrial applications. The UAE Project represents a key milestone in the Company’s globalization strategy and serves as a benchmark for high-end Chinese manufacturing expanding overseas. Strategically located at the crossroads of Asia, Europe, and Africa, the UAE offers geographic advantages and a business-friendly environment. Lianhe Sowell will leverage this opportunity to build an integrated AI robot base encompassing R&D, production, sales, and export operations, further strengthening its global industrial chain presence.

Driving Industrial Upgrading in the UAE, Boosting Regional Economy and Innovation

Lianhe Sowell estimates the Project construction period will be around 18 months. Upon completion, the manufacturing and R&D base is expected to have an annual output of several thousand AI robots annually and create more than 2,000 high-skill local jobs. Lianhe Sowell also plans to establish a robotics technology training and certification center to support local talent development and promote industrial automation and green manufacturing across the Middle East. The AI painting robots will be deployed across a range of sectors, including automotive, construction, aviation, rail transportation, marine, and new energy, supporting the UAE’s “Industry 4.0” strategy with advanced technology and expertise.

Dual-Engine Growth: Finance and Technology

Looking ahead, this financing marks Lianhe Sowell’s official entry into a new phase of international intelligent manufacturing and underscores the UAE’s growing role as a key node in the global AI manufacturing ecosystem.

The Company stated that it will use this initiative as a starting point to further expand its presence across the Middle East and Global market, and to advance global collaboration in the automation industry chain. This is not merely a financing partnership—it represents a redefinition of the global industrial landscape. By deeply integrating global capital, technology, and market resources, and with UAE as its strategic hub, Lianhe Sowell aims to showcase Chinese smart manufacturing on the international stage.

About Lianhe Sowell International Group Ltd

Lianhe Sowell International Group Ltd (Nasdaq: LHSW) provides industrial vision and industrial robotics solutions. With expertise in the field of machine vision and intelligent equipment, the Company specializes in smart transportation, industrial automation, artificial intelligence, and machine vision. Committed to offering comprehensive intelligent solutions to customers worldwide, the Company continuously advances the intelligent transformation of various industries through technological innovation. For more information, please visit: http://www.sowellrobot.com/

Forward-Looking Statement

This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may, “will, “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate,” “plan” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and other risk factors discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:

Lianhe Sowell International Group Ltd
ir@sowellrobot.com

WFS Investor Relations Inc.
Janice Wang
Email: services@wealthfsllc.com
Phone: +86 13811768599
+1 628 283 9214

FAQ

What financing did Lianhe Sowell (LHSW) announce on October 21, 2025?

Lianhe Sowell announced a $105 million non-binding term sheet with Excellent Capital Investments for structured senior secured credit to support a UAE manufacturing and R&D base.

How much is the total investment for Lianhe Sowell's UAE AI robot project (LHSW)?

The Project is estimated at $132.5 million in total investment.

What portion of the UAE project will Lianhe Sowell (LHSW) fund directly?

Lianhe Sowell will contribute 20% of the Project investment as a cornerstone investment.

What timeline and production capacity did Lianhe Sowell (LHSW) disclose for the UAE base?

The company estimates an 18-month construction period and an annual output of several thousand AI robots.

Is the Lianhe Sowell (LHSW) financing agreement final?

No. The Term Sheet is non-binding and remains subject to due diligence, documentation, and final approval.

How many jobs does Lianhe Sowell expect the UAE project to create (LHSW)?

The company expects the Project to create more than 2,000 high-skill local jobs.