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Lianhe Sowell International Group Enters into a Non-binding Term Sheet Regarding $105 Million International Funding to Establish the First AI Robot Manufacturing and R&D Base in UAE

1. LHSW secures $105 million for AI robot manufacturing in UAE. 2. Total investment in project estimated at $132.5 million. 3. Project expected to create 2,000 high-skill jobs. 4. UAE project aligns with global intelligent manufacturing strategy. 5. Long-term regional growth potential in AI robotics market.

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Why Bullish?

The $105 million financing indicates strong investor confidence in LHSW's technology and growth trajectory. Historically, similar initiatives by tech firms have led to positive stock reactions, as seen with industry leaders expanding into emerging markets.

How important is it?

This financing marks a significant leap for LHSW in setting up a strategic manufacturing base in the UAE, enhancing its operational footprint and technological capabilities, which are crucial for future growth.

Why Long Term?

The completion of this project will take 18 months, establishing LHSW’s presence in the expanding AI market, likely benefitting long-term earnings potential in various sectors, akin to Amazon's international fulfillment strategy.

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LHSWECI
Global Strategy Enters New Phase via Setting Up Middle East Headquarters​​ Dubai, Oct. 21, 2025 (GLOBE NEWSWIRE) -- Lianhe Sowell International Group Ltd. (the “Company”, NASDAQ: LHSW) today announced that it has signed a $105 million financing non-binding frame agreement (the “Term Sheet”) with Excellent Capital Investments (ECI), a European infrastructure investment fund. The potential proceeds will be used exclusively to establish the Company’s first artificial intelligence-powered robot manufacturing and research and development base in the United Arab Emirates (the “Project”), marking a significant step in Lianhe Sowell’s global intelligent manufacturing strategy. Pursuant to the Term Sheet, total investment in the Project is estimated to be approximately $132.5 million. Lianhe Sowell will contribute 20% of the Project investment as cornerstone investment, while ECI will provide the remaining 80%, or $105 million in the form of structured senior secured credit support. The partnership underscores strong recognition from international capital markets of Lianhe Sowell’s technical expertise and global operational capabilities. The Term Sheet remains subject to due diligence, documentation, and final approval. A New Chapter for Chinese High-End Manufacturing Expansion in UAE​ As a Nasdaq-listed provider of advanced manufacturing and AI solutions, Lianhe Sowell is committed to driving innovation in intelligent manufacturing, robotic automation, and AI-enabled industrial applications. The UAE Project represents a key milestone in the Company’s globalization strategy and serves as a benchmark for high-end Chinese manufacturing expanding overseas. Strategically located at the crossroads of Asia, Europe, and Africa, the UAE offers geographic advantages and a business-friendly environment. Lianhe Sowell will leverage this opportunity to build an integrated AI robot base encompassing R&D, production, sales, and export operations, further strengthening its global industrial chain presence. Driving Industrial Upgrading in the UAE, Boosting Regional Economy and Innovation Lianhe Sowell estimates the Project construction period will be around 18 months. Upon completion, the manufacturing and R&D base is expected to have an annual output of several thousand AI robots annually and create more than 2,000 high-skill local jobs. Lianhe Sowell also plans to establish a robotics technology training and certification center to support local talent development and promote industrial automation and green manufacturing across the Middle East. The AI painting robots will be deployed across a range of sectors, including automotive, construction, aviation, rail transportation, marine, and new energy, supporting the UAE’s “Industry 4.0” strategy with advanced technology and expertise. Dual-Engine Growth: Finance and Technology Looking ahead, this financing marks Lianhe Sowell’s official entry into a new phase of international intelligent manufacturing and underscores the UAE’s growing role as a key node in the global AI manufacturing ecosystem. The Company stated that it will use this initiative as a starting point to further expand its presence across the Middle East and Global market, and to advance global collaboration in the automation industry chain. This is not merely a financing partnership—it represents a redefinition of the global industrial landscape. By deeply integrating global capital, technology, and market resources, and with UAE as its strategic hub, Lianhe Sowell aims to showcase Chinese smart manufacturing on the international stage. 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. 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 risk factors discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. 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 Ltdir@sowellrobot.com WFS Investor Relations Inc.Janice WangEmail: services@wealthfsllc.comPhone: +86 13811768599+1 628 283 9214

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