Lianhe Sowell International Group Ltd has secured sales orders for AI-powered automotive painting robots and spray booth systems in West and Southern Africa. The agreements mark the company's initial large-scale deployment of intelligent painting solutions across these regions, supporting its international expansion strategy.

Under the agreement for West Africa, Lianhe Sowell will deliver 10 AI-powered automotive painting robots to a comprehensive automotive maintenance group. The equipment is intended for deployment in automotive maintenance flagship stores to facilitate the intelligent upgrade of automotive aftermarket services. The company stated that introducing these technologies may help promote local social and economic development.

In Southern Africa, Lianhe Sowell has entered a separate pilot project with a local company specializing in R&D and application of advanced spray-coating materials. An AI-powered automotive painting robot will be deployed in South Africa for trial use in automotive refinishing operations. This initiative aims to support the introduction of intelligent automation solutions in the local market.

The company expects these projects to serve as a foundation for further expansion into East Africa and other African markets. By leveraging AI and robotics technologies, Lianhe Sowell aims to improve painting quality, operational efficiency, and consistency in automotive refinishing operations. The systems are designed to reduce worker exposure to paint mist and other airborne substances, thereby enhancing workplace safety for technicians.

"We are pleased to expand our presence in West and Southern Africa through these partnerships," said Mr. Yue Zhu, Chief Executive Officer and Director of Lianhe Sowell International Group Ltd. "These agreements mark an important step in our international expansion strategy. We see strong long-term demand for intelligent automation in Africa’s automotive aftermarket sector."

Project Details

Lianhe Sowell International Group Ltd will implement a 1-for-16 share consolidation to maintain its listing on the Nasdaq Capital Market. The consolidation affects all shareholders uniformly and will not alter any shareholder's percentage interest in the company's outstanding ordinary shares, except for adjustments resulting from the treatment of fractional shares. Trading on a post-consolidation basis is scheduled to begin on June 22, 2026, under the same symbol "LHSW" but with a new CUSIP number of G5480C112.

Share Consolidation Details

Upon effectiveness, every 16 Class A ordinary shares with a par value of US$0.0001 each will be consolidated into one Class A ordinary share with a par value of US$0.0016 each. The same ratio applies to Class B ordinary shares. No fractional shares will be issued; instead, any fractional shares resulting from the consolidation will be rounded up to the next whole number.

Outstanding Shares Impact

Immediately prior to the consolidation, the company had 52,000,000 Class A ordinary shares and 3,000,000 Class B ordinary shares issued and outstanding. Following the consolidation, the total issued and outstanding shares will be approximately 3,250,000 Class A ordinary shares and 187,500 Class B ordinary shares, subject to the rounding up of fractional shares.

Approval Timeline

The board of directors approved the share consolidation on May 14, 2026. Subsequently, the company's shareholders approved the measure on May 28, 2026.