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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

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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.

Lianhe Sowell (NASDAQ: LHSW) ha firmato un term sheet non vincolante da 105 milioni di dollari con Excellent Capital Investments per un credito strutturato senior garantito, al fine di aiutare a costruire la sua prima base di produzione e ricerca e sviluppo di robot AI negli Emirati Arabi Uniti. L'investimento totale del progetto è stimato in 132,5 milioni di dollari, con Lianhe Sowell che fornisce un contributo a fondamento del 20% e ECI che fornisce l'80% rimanente (105 milioni di dollari). Il progetto punta a un periodo di costruzione di circa 18 mesi, a una produzione annua di diversi migliaia di robot AI e alla creazione di più di 2.000 posti di lavoro locali altamente qualificati. Il Term Sheet è soggetto a due diligence, documentazione e approvazione finale.

Lianhe Sowell (NASDAQ: LHSW) firmó un term sheet no vinculante de 105 millones de dólares con Excellent Capital Investments para un crédito estructurado senior garantizado, para ayudar a construir su primera base de fabricación e I+D de robots AI en los Emiratos Árabes Unidos. La inversión total del proyecto se estima en 132,5 millones de dólares, con Lianhe Sowell aportando un 20% como contribución fundacional y ECI aportando el 80% restante (105 millones de dólares). El proyecto apunta a un periodo de construcción de aproximadamente 18 meses, una producción anual de varios miles de robots AI y la creación de más de 2.000 empleos locales altamente cualificados. El Term Sheet está sujeto a diligencia debida, documentación y aprobación final.

리안헤 소웰 (NASDAQ: LHSW)은 아랍에미리트에서 첫 AI 로봇 제조 및 연구개발(R&D) 기지를 구축하기 위한 구조화된 선순위 담보 신용을 위한 비구속성 조건서(term sheet) 1억 5천만 달러Excellent Capital Investments와 체결했습니다. 프로젝트의 총 투자액은 1억 3,250만 달러로 추정되며, 리안헤 소웰은 20%의 코너스톤 기여를, ECI가 나머지 80% (1억 5천만 달러)를 제공합니다. 프로젝트는 약 18개월의 시공 기간과 연간 수천 대의 AI 로봇 생산, 그리고 2,000명 이상의 지역 고숙련 일자리 창출을 목표로 합니다. 이 조건서는 실사, 문서화 및 최종 승인을 전제로 합니다.

Lianhe Sowell (NASDAQ: LHSW) a signé une term sheet non contraignant de 105 millions de dollars avec Excellent Capital Investments pour un crédit structuré senior garanti afin d’aider à construire sa première base de fabrication et de R&D de robots IA aux Émirats arabes unis. L’investissement total du projet est estimé à 132,5 millions de dollars, Lianhe Sowell apportant une contribution fondatrice de 20% et ECI fournissant les 80% restants (105 millions de dollars). Le projet vise une période de construction d’environ 18 mois, une production annuelle de plusieurs milliers de robots IA et la création de plus de 2 000 emplois locaux hautement qualifiés. Le Term Sheet est soumis à due diligence, à la documentation et à l’approbation finale.

Lianhe Sowell (NASDAQ: LHSW) hat ein nicht bindendes Term Sheet über 105 Millionen Dollar mit Excellent Capital Investments für strukturierten Senior Secured Credit unterzeichnet, um den Bau der ersten AI-Roboterherstellung und F&E-Basis in den VAE zu unterstützen. Die Gesamtprojektsinvestition wird auf 132,5 Millionen Dollar geschätzt, wobei Lianhe Sowell einen 20%-Ankerbeitrag leistet und ECI die verbleibenden 80% (105 Millionen Dollar) bereitstellt. Das Projekt zielt auf eine Bauzeit von ca. 18 Monaten, eine jährliche Produktion von mehreren Tausend AI-Robotern und die Schaffung von > 2.000 hochqualifizierten lokalen Arbeitsplätzen ab. Das Term Sheet unterliegt Due Diligence, Dokumentation und der endgültigen Genehmigung.

ليان هاي سوويل (NASDAQ: LHSW) وقّعت مذكرة شروط غير ملزمة بقيمة 105 ملايين دولار مع Excellent Capital Investments لإعطاء ائتمان مهيكل مميز عالي الضمان للمساعدة في بناء أول قاعدة تصنيع وتطوير روبوتات AI في الإمارات العربية المتحدة. الاستثمار الإجمالي للمشروع مقدر بـ 132.5 مليون دولار، حيث تقدم ليانهاي سوويل مساهمة حجر الأساس بنسبة 20% وتقدّم ECI الـ80% المتبقية (105 ملايين دولار). يستهدف المشروع فترة بناء تبلغ نحو 18 شهراً، وإنتاجاً سنوياً من آلاف الروبوتات AI، وخلق أكثر من 2000 وظيفة محلية عالية المهارة. تكون مذكرة الشروط خاضعة لاللادريّة، والتوثيق، والموافقة النهائية.

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

Insights

Non-binding $105M financing to build a UAE AI-robot manufacturing and R&D base; project funding and milestones remain conditional.

The company plans a project with total investment of $132.5 million, of which it will contribute 20% and Excellent Capital Investments will provide $105 million as structured senior secured credit support. The transaction, if completed, funds an integrated AI robot R&D, production, sales and export base positioned as the company’s Middle East hub and targets an annual output of several thousand AI robots and creation of more than 2,000 high-skill local jobs after an estimated construction period of 18 months.

Key dependencies and risks are explicit: the Term Sheet is non-binding and subject to due diligence, documentation, and final approval, so execution risk is material and timing uncertain. The financing structure described is senior secured credit support which implies lender protections and repayment priority; the company’s cornerstone contribution of 20% aligns equity skin in the project but does not remove financing contingencies.

Monitor completion of due diligence and final documentation, receipt of required approvals, firm financing agreements, and construction progress toward the 18 months timeline; those events will determine whether the announced scale (several thousand units annually and > 2,000 jobs) is deliverable. Expect the next concrete milestones to be formal credit agreements and project permits within the near-to-medium term.

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.
Lianhe Sowell International Group Ltd

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