Lianhe Sowell International Group Ltd Announces Strategic Plan to Establish Specialized Industry Robotics Headquarters in the UAE

Rhea-AI Summary

Lianhe Sowell International Group (Nasdaq: LHSW) announced a strategic plan to establish a Specialized Industry Robotics Industrial Headquarters in the United Arab Emirates to combine R&D, manufacturing, and global sales for its AI-driven robotics business.

The project targets specialized robots for automotive spray-painting, high-altitude, underwater, hazardous-chemical, and remote medical uses; total planned investment is approximately US$200 million, with an estimated construction period of 18 months and designed annual production capacity of 50,000–80,000 units.

The company is engaging local banks, investment funds, potential partners, and advisors for financing and formation, but noted there are risks and no assurance the plan will be completed as contemplated.

Positive

• Planned investment of US$200 million
• Estimated construction period of 18 months
• Designed annual production capacity of 50,000–80,000 specialized robots
• Regional hub intended to serve Asia, Europe, the Americas, and Africa

Negative

• Company is seeking external financing from local banks and investment funds; funding is not secured
• No assurance the plan will be carried out as contemplated, creating execution risk
• Project completion depends on partnerships and approvals, creating timeline and operational uncertainty

Key Figures

Planned UAE investment: US$200 million Construction period: 18 months Annual capacity (low end): 50,000 robots +1 more

4 metrics

Planned UAE investment US$200 million Total planned investment for UAE specialized robotics HQ

Construction period 18 months Expected construction period for UAE headquarters project

Annual capacity (low end) 50,000 robots Designed annual production capacity of specialized industry robots

Annual capacity (high end) 80,000 robots Upper end of designed annual production capacity range

Market Reality Check

Price: $0.7601 Vol: Volume 37,082 is far belo...

low vol

$0.7601 Last Close

Volume Volume 37,082 is far below the 20-day average of 1,496,694 (relative volume 0.02). low

Technical Shares trade below the 200-day MA of 2.03 at a pre-news price of 0.7601.

Peers on Argus

LHSW was down -4.29% while momentum peers ARAI and ALAR showed gains of 18.12999...

2 Up

LHSW was down -4.29% while momentum peers ARAI and ALAR showed gains of 18.129999935626984% and 5.040000006556511%, suggesting the move was more stock-specific than sector-driven.

Historical Context

5 past events · Latest: Dec 01 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 01	Procurement wins	Positive	+7.8%	Won procurement bids for medical rehab and test instruments in China.
Nov 07	Dual-class structure	Negative	-6.2%	Shareholders approved dual-class share structure concentrating voting power.
Oct 24	Government recognition	Positive	+3.9%	Subsidiary named “Specialized and Innovative Little Giant” by MIIT.
Oct 21	UAE funding term sheet	Positive	+3.8%	Non-binding $105M term sheet to fund UAE AI robot base construction.
Sep 22	Large AOI orders	Positive	-9.1%	Secured $4.3M AI-powered 3D AOI equipment orders for Midea Group.

Pattern Detected

Operational and AI-related wins often saw positive reactions, but one sizeable AI equipment order drew a negative move, showing inconsistent responses to good news.

Recent Company History

Over the last six months, LHSW reported several milestones: AI-powered AOI orders worth $4.3 million on Sep 22, 2025 (stock -9.06%), a $105 million funding term sheet for a UAE AI robot base on Oct 21, 2025 (+3.81%), MIIT “Little Giant” recognition on Oct 24, 2025 (+3.86%), dual-class share approval on Nov 7, 2025 (-6.15%), and procurement wins on Dec 1, 2025 (+7.8%). The new UAE headquarters plan extends this expansion and AI-robotics narrative.

Market Pulse Summary

This announcement outlines a major strategic step: a UAE specialized industry robotics headquarters ...

Analysis

This announcement outlines a major strategic step: a UAE specialized industry robotics headquarters with planned investment of US$200 million, an expected 18-month build, and designed capacity of 50,000–80,000 robots annually. It extends earlier UAE and AI-robotics initiatives while reinforcing LHSW’s global ambitions. Investors may watch how financing discussions with local banks and funds progress, how quickly construction milestones are met, and whether prior AI and robotics plans translate into sustained international demand.

Key Terms

industrial machine vision, artificial intelligence, Industry 4.0

3 terms

industrial machine vision technical

"a provider of industrial machine vision products and solutions in China"

Industrial machine vision is the combination of cameras, lighting and software that lets factory equipment 'see' and automatically inspect, measure or guide objects on a production line — like giving machines a pair of eyes and a decision-making brain. It matters to investors because it drives higher product quality, faster production and lower labor costs, improving profit margins and reducing recall or warranty risk; think of it as automation that finds tiny defects humans might miss and scales reliably across factories.

artificial intelligence technical

"advancement of its artificial intelligence–driven robotics business"

Artificial intelligence is the ability of computers and machines to perform tasks that typically require human thinking, such as understanding language, recognizing patterns, or making decisions. For investors, it matters because AI can enhance efficiency, uncover new insights, and enable smarter strategies, potentially impacting the value and performance of companies that develop or utilize this technology.

Industry 4.0 technical

"The UAE's strong push toward Industry 4.0 and intelligent manufacturing"

Industry 4.0 is the next phase of manufacturing and business processes that emphasizes the use of advanced digital technology, such as automation, data exchange, and smart systems, to improve efficiency and flexibility. It is like upgrading a factory from manual tools to a highly interconnected, intelligent network that can adapt quickly to changes. For investors, embracing Industry 4.0 signals potential opportunities in innovative companies and sectors leading this technological transformation.

AI-generated analysis. Not financial advice.

SHENZHEN, China, Jan. 26, 2026 /PRNewswire/ -- Lianhe Sowell International Group Ltd (Nasdaq: LHSW) (the "Company"), a provider of industrial machine vision products and solutions in China, today announced its strategic plan to invest in and establish its first Specialized Industry Robotics Industrial Headquarters Base in the United Arab Emirates, ("UAE") marking a significant milestone in the Company's global expansion strategy and the advancement of its artificial intelligence–driven robotics business.

According to the strategic plan, the UAE-based headquarters will bring together research and development, manufacturing, and global sales for the Company's specialized industry robotics business, serving customers across international markets. The project will focus on providing high-quality and reliable robotic solutions across several specialized areas, including automotive spray-painting, high-altitude operations, underwater operations, hazardous chemical environments, and remote medical applications. These solutions are intended for use across a wide range of sectors, including industrial manufacturing, energy and chemical processing, public safety, healthcare, and high-end service industries.

Located in the UAE, the headquarters is expected to serve as a regional hub supporting the Company's operations across Asia, Europe, the Americas, and Africa, with a focus on major global markets. The total planned investment for the project is expected to be approximately US$200 million. The project is expected to have a construction period of approximately 18 months and, upon completion, is designed to support an annual production capacity of approximately 50,000 to 80,000 specialized industry robots. Through the establishment of this regional industrial headquarters, the Company aims to better integrate global innovation resources, strengthen its research and manufacturing capabilities, and support the commercialization and international rollout of its advanced robotics technologies.

Mr. Dengyao Jia, Chairman of the Board of Lianhe Sowell International Group Ltd, commented, "This initiative is a key step in advancing our global strategy and reflects how Chinese high-end manufacturing companies are engaging more deeply in global industrial collaboration and competition. The UAE's strong push toward Industry 4.0 and intelligent manufacturing, together with its supportive policies for advanced manufacturing and artificial intelligence, is creating significant market opportunities. In addition, its strategic location and open business environment make it a natural hub linking Asia, Europe, and Africa."

The Company noted that it is actively engaging with local banks and investment funds in the UAE and is seeking financial support for the project. In addition, the Company is exploring potential partnerships and engaging local advisors to prepare for the formation and operationalization of the project. However, given the potential risks and uncertainties associated with the plan, there is no assurances that we will carry out the plan as contemplated or that the contemplated result will be achieved in its entirety.

By leveraging favorable policies, a supportive capital environment, and established global logistics and trade networks, Lianhe Sowell aims to tap the significant market potential across the Asia–Europe–Africa region. As the UAE specialized industry robotics headquarters is developed and becomes operational, the Company expects to further strengthen its global operating capabilities, international competitiveness, and brand presence, while delivering safer, more efficient, and more intelligent solutions to customers worldwide.

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. Any statements that refer to expectations, projections or other characterizations of future events or circumstances, the markets in which the Company operates as well as any information concerning possible or assumed future results of operations of the Company, are also 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, availabilities of potential financing, engagement of relevant advisors and partners, the satisfaction of relevant regulatory and legal licenses and permits, and other risk factors discussed in the Company's filings with the SEC, which are available for review at www.sec.gov, which may cause actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. 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.
Email: services@wealthfsllc.com
Phone: +1 628 283 9214

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SOURCE Lianhe Sowell International Group Ltd

FAQ

What is LHSW announcing on January 26, 2026 regarding a UAE robotics headquarters?

LHSW announced a strategic plan to establish a Specialized Industry Robotics Industrial Headquarters in the UAE with R&D, manufacturing, and global sales functions.

How much will LHSW invest in the UAE specialized robotics headquarters?

The company stated a total planned investment of approximately US$200 million.

What is the expected construction timeline and production capacity for LHSW's UAE facility?

The project is expected to have an approximate 18-month construction period and support annual production of about 50,000–80,000 robots.

Which specialized robot applications will LHSW focus on at the UAE headquarters?

The project will focus on automotive spray-painting, high-altitude, underwater, hazardous chemical, and remote medical robotic solutions.

Does LHSW have guaranteed funding and completion for the UAE robotics project?

No; the company is actively engaging local banks and investment funds but stated there are risks and no assurances the plan will be completed as contemplated.

How will the UAE headquarters affect LHSW's global operations and markets?

The company expects the UAE hub to integrate global innovation, strengthen R&D and manufacturing, and support commercialization across major global markets.