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Lianhe Sowell International Group Ltd Received Letter of Intent for Investment from A Large Investment Fund in China

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Lianhe Sowell International Group (NASDAQ: LHSW), a Chinese machine vision solutions provider, has received a non-binding letter of intent for investment up to RMB200 million from Hangzhou Yuhang Economic Development Equity Investment Fund. The funding will be allocated as follows:

50% will support R&D for new industrial robotics product lines targeting automotive, bio pharmaceutical, and construction sectors. The company's September 2024 collaboration with Zhejiang University's High-End Equipment Institute provides technical support and talent resources.

The remaining funds will establish a 40,000-square-meter manufacturing facility in Hangzhou, Zhejiang province, expected to boost annual production capacity to 10,000 industrial robots.

Lianhe Sowell International Group (NASDAQ: LHSW), un fornitore cinese di soluzioni di visione artificiale, ha ricevuto una lettera di intenti non vincolante per un investimento fino a 200 milioni di RMB dal Fondo di Investimento Azionario per lo Sviluppo Economico di Hangzhou Yuhang. I fondi saranno distribuiti come segue:

Il 50% sarà destinato alla ricerca e sviluppo di nuove linee di prodotti per robotica industriale, rivolte ai settori automobilistico, biofarmaceutico e delle costruzioni. La collaborazione prevista per settembre 2024 con l'Istituto per le Attrezzature di Alta Gamma dell'Università di Zhejiang fornirà supporto tecnico e risorse umane.

Il restante finanziamento servirà a realizzare uno stabilimento produttivo di 40.000 metri quadrati a Hangzhou, nella provincia di Zhejiang, che dovrebbe aumentare la capacità produttiva annua a 10.000 robot industriali.

Lianhe Sowell International Group (NASDAQ: LHSW), un proveedor chino de soluciones de visión artificial, ha recibido una carta de intención no vinculante para una inversión de hasta 200 millones de RMB del Fondo de Inversión en Capital para el Desarrollo Económico de Hangzhou Yuhang. Los fondos se asignarán de la siguiente manera:

El 50% se destinará a I+D para nuevas líneas de productos de robótica industrial dirigidas a los sectores automotriz, biofarmacéutico y de la construcción. La colaboración prevista para septiembre de 2024 con el Instituto de Equipos de Alta Gama de la Universidad de Zhejiang proporcionará apoyo técnico y recursos de talento.

El resto de los fondos se utilizarán para establecer una instalación de fabricación de 40,000 metros cuadrados en Hangzhou, provincia de Zhejiang, que se espera aumente la capacidad de producción anual a 10,000 robots industriales.

Lianhe Sowell International Group (NASDAQ: LHSW)는 중국의 머신 비전 솔루션 제공업체로, 항저우 위항 경제개발 주식투자펀드로부터 최대 2억 위안의 투자에 대한 비구속적 투자 의향서를 받았습니다. 자금 배분은 다음과 같습니다:

50%는 자동차, 바이오제약, 건설 분야를 타깃으로 한 새로운 산업용 로봇 제품 라인의 연구개발에 사용됩니다. 2024년 9월 저장대학교 고급장비연구소와의 협력은 기술 지원 및 인재 자원을 제공합니다.

나머지 자금은 저장성 항저우에 4만 평방미터 규모의 제조시설을 설립하는 데 사용되며, 연간 생산능력을 1만 대의 산업용 로봇으로 확대할 예정입니다.

Lianhe Sowell International Group (NASDAQ : LHSW), un fournisseur chinois de solutions de vision industrielle, a reçu une lettre d'intention non contraignante pour un investissement allant jusqu'à 200 millions de RMB de la part du Fonds d'investissement en capital pour le développement économique de Hangzhou Yuhang. Le financement sera réparti comme suit :

50 % seront dédiés à la R&D pour de nouvelles gammes de produits de robotique industrielle ciblant les secteurs automobile, biopharmaceutique et de la construction. La collaboration prévue en septembre 2024 avec l'Institut des équipements de pointe de l'Université de Zhejiang fournira un soutien technique et des ressources en talents.

Le reste des fonds servira à établir une installation de production de 40 000 mètres carrés à Hangzhou, dans la province du Zhejiang, qui devrait porter la capacité de production annuelle à 10 000 robots industriels.

Lianhe Sowell International Group (NASDAQ: LHSW), ein chinesischer Anbieter von Maschinenvisionslösungen, hat ein unverbindliches Absichtsschreiben für eine Investition von bis zu 200 Millionen RMB vom Hangzhou Yuhang Economic Development Equity Investment Fund erhalten. Die Mittel werden wie folgt verwendet:

50 % fließen in Forschung und Entwicklung neuer industrieller Robotik-Produktlinien, die auf die Automobil-, Bio-Pharma- und Bausektoren abzielen. Die im September 2024 geplante Zusammenarbeit mit dem High-End Equipment Institute der Zhejiang Universität bietet technische Unterstützung und Talentressourcen.

Die restlichen Mittel werden für den Bau einer 40.000 Quadratmeter großen Produktionsstätte in Hangzhou, Provinz Zhejiang, verwendet, die die jährliche Produktionskapazität auf 10.000 Industrieroboter steigern soll.

Positive
  • Potential RMB200 million investment to strengthen R&D and manufacturing capabilities
  • Strategic partnership with Zhejiang University's High-End Equipment Institute provides technical support
  • New 40,000-square-meter facility will increase production capacity to 10,000 robots annually
  • Expansion into high-growth sectors: automotive, bio pharmaceutical, and construction
Negative
  • Letter of intent is non-binding, with final terms subject to definitive agreement
  • Significant capital expenditure required for new manufacturing facility
  • Potential execution risks in scaling production and entering new sectors

Insights

Chinese fund's non-binding LOI for RMB200M investment will boost LHSW's robotics R&D and manufacturing capabilities if finalized.

Lianhe Sowell has secured a non-binding Letter of Intent from Hangzhou Yuhang Economic Development Equity Investment Fund for a significant potential investment of up to RMB200 million. This development represents a substantial capital injection opportunity for the emerging robotics player, though investors should note the preliminary nature of this agreement.

The planned allocation of funds demonstrates a balanced approach to growth: 50% would enhance R&D capabilities for developing industry-specific robotics solutions for automotive, bio pharmaceutical, and construction sectors. This strategic focus aligns with high-growth industrial automation segments where specialized solutions command premium pricing and higher margins.

The remaining investment would establish a 40,000-square-meter manufacturing facility in Hangzhou, a significant scaling opportunity that could increase production capacity to 10,000 industrial robots annually. This manufacturing base would strengthen LHSW's position in standardized products like intelligent painting robots while supporting customized solutions delivery.

The company's September 2024 collaboration with Zhejiang University's High-End Equipment Institute provides technical support and talent access that complements this potential investment. Located in Zhejiang Province, a recognized robotics innovation hub, this positions LHSW to capitalize on regional expertise and supply chain advantages.

While promising, this remains a non-binding LOI with final terms subject to a definitive agreement. The Fund's investment criteria, timeline for finalizing terms, and potential ownership implications remain undisclosed - creating execution uncertainty despite the strategic merit of the proposed capital allocation.

Fueling R&D of New Industrial Robots and Asia-Pacific Manufacturing Base Expansion

Shenzhen, China, May 12, 2025 (GLOBE NEWSWIRE) -- Lianhe Sowell International Group Ltd (Nasdaq: LHSW) (the “Company”), a provider of machine vision products and solutions applied in a wide range of businesses across industries in China, today announced it received a letter of intent (the “LOI”) from a large investment fund in China, Hangzhou Yuhang Economic Development Equity Investment Fund (the "Fund"), for a funding of no more than RMB200 million. The Company plans to apply the investment primarily to support the R&D of its next-generation industrial robots and the construction of the Company’s manufacturing base in Hangzhou, Zhejiang province. The LOI is non-binding and the final investment terms will be subject to a definitive agreement between the Company and the Fund.

Innovation Through Technology: R&D Boost

As an emerging player in China’s industrial robotics sector, the Company specializes in intelligent collaborative robots, high-precision robotic arms, and vision-only systems. The Company plans to allocate 50% of the investment to develop new product lines, including industry-specific robotics solutions for automotive, bio pharmaceutical, and construction sectors, while continuing the effort to enhance the intelligence and flexibility of existing products.

In September 2024, the Company entered into an agreement for in-depth collaboration with Zhejiang University’s High-End Equipment Institute, pursuant to which the Company is able to secure robust technical support and a talent pipeline. This investment will further solidify its technological strength and enable large-scale production capabilities in Zhejiang Province,China—a hub for robotics innovation.

Manufacturing Expansion: Strengthening Production Capacity

Beyond R&D, part of the funding will be used to establish a manufacturing base for standardized products like intelligent painting robots and specialized industrial robots. The planned 40,000-square-meter facility is expected to increase annual production capacity to 10,000 industrial robots while enabling rapid delivery of customized solutions.

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. These forward-looking statements include, without limitation, the Company's statements regarding the size of the anticipated investment, the intended use of the funds from the anticipated investment from the Fund, the anticipated size of any manufacturing facilities to be built, and the expected production capacity of such facility. No assurances can be made that the parties will successfully negotiate and enter into a definitive agreement, or that the proposed transaction will be consummated on the terms or timeframe currently contemplated, or at all. 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 factors discussed in the “Risk Factors” section of the registration statement on Form F-1 (File No. 333-279303) filed with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. 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 is the size of the potential investment in Lianhe Sowell (LHSW) and who is the investor?

Hangzhou Yuhang Economic Development Equity Investment Fund has provided a letter of intent to invest up to RMB200 million in Lianhe Sowell.

How will LHSW use the RMB200 million investment funds?

50% will fund R&D for new industrial robotics products, while the remainder will establish a 40,000-square-meter manufacturing facility in Hangzhou.

What is the expected production capacity of LHSW's new manufacturing facility?

The new facility is expected to increase annual production capacity to 10,000 industrial robots.

Which sectors is LHSW targeting with its new robotics solutions?

LHSW is developing robotics solutions for the automotive, bio pharmaceutical, and construction sectors.

Is the investment in LHSW confirmed and binding?

No, the letter of intent is non-binding, and final investment terms are subject to a definitive agreement between the company and the fund.
Lianhe Sowell International Group Ltd

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