Kale Environmental Technology (Shanghai) Corporation

Kaile Environmental Technology Shanghai announced that, due to the two parties failing to reach agreement on key terms, it has terminated the intention to acquire no less than 50% of the equity in Dongguan Kesheng Electromechanical Equipment, and has signed a termination agreement with the counterparty. The company disclosed a preliminary announcement on October 22, 2025 regarding the planned equity acquisition, intending to acquire Kesheng Electromechanical shares with cash. It subsequently engaged intermediaries to conduct due diligence, audit and valuation, and held multiple rounds of negotiations with the counterparty on the transaction plan and core terms, but ultimately failed to reach an agreement. The company stated that the equity acquisition was still in the planning stage, no formal equity acquisition agreement had been signed, and the termination will not have a material impact on the company's financial condition or operating results, nor does it harm the interests of the company and its shareholders.