Supporting Industrial Robot R&D and Asia-Pacific Manufacturing Base Growth

Shenzhen, China, May 12, 2025 — Lianhe Sowell International Group Ltd (Nasdaq: LHSW) (“the Company”), a provider of machine vision products and solutions for various industries in China, today announced it has received a letter of intent (“LOI”) from Hangzhou Yuhang Economic Development Equity Investment Fund (“the Fund”), a major investment fund in China, for potential funding of up to RMB200 million. The Company intends to use the investment primarily to advance the R&D of its next-generation industrial robots and to establish its manufacturing base in Hangzhou, Zhejiang province. The LOI is non-binding, and the final investment terms will depend on a definitive agreement between the Company and the Fund.

Technological Innovation: Boosting R&D

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 the automotive, biopharmaceutical, and construction sectors, while continuing to improve the intelligence and flexibility of existing products.

In September 2024, the Company entered into an in-depth collaboration agreement with Zhejiang University’s High-End Equipment Institute, ensuring access to strong technical support and a talent pool. This investment will further strengthen its technological capabilities and enable large-scale production in Zhejiang Province, China—a center for robotics innovation.

Manufacturing Expansion: Enhancing Production Capacity

In addition to R&D, part of the funding will be used to create a manufacturing base for standardized products such as 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 fast delivery of customized solutions.

About Lianhe Sowell International Group Ltd

Lianhe Sowell International Group Ltd (Nasdaq: LHSW) offers industrial vision and robotics solutions. With expertise in machine vision and intelligent equipment, the Company focuses on smart transportation, industrial automation, artificial intelligence, and machine vision. Committed to providing comprehensive intelligent solutions to customers worldwide, the Company continually promotes the intelligent transformation of various industries through technological innovation. For more information, please visit:

Forward-Looking Statement

This press release contains forward-looking statements regarding plans, objectives, goals, strategies, future events or performance, underlying assumptions, and other statements that are not statements of historical facts. 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, which constitute forward-looking statements. These 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. There is no guarantee that the parties will successfully negotiate and enter into a definitive agreement, or that the proposed transaction will be completed 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 actual results to differ materially from the Company’s expectations discussed in these statements. These statements are subject to uncertainties and risks, including 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. Investors are cautioned not to place undue reliance on 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 . The Company undertakes no obligation to revise these forward-looking statements to reflect events or circumstances that occur after the date of this release.

For more information, please contact:

Lianhe Sowell International Group Ltd

WFS Investor Relations Inc.
Janice Wang
Email:
Phone: +86 13811768599
+1 628 283 9214