MAAS · Maase Inc.

The acquisition of Times Good Limited represents a strategic expansion by Maase Inc. into AI computing power services and related technologies. The consideration, valued at approximately RMB1.1 billion, was primarily stock-based, with 87.4 million Class A ordinary shares issued along with a $26 million cash component. The acquired entity, Times Good, had been operating under significant financial strain, with a working capital deficit of RMB121.6 million, shareholders' deficit of RMB124.5 million, and a net loss of RMB67.1 million for the fiscal year ended June 30, 2025. The auditors highlighted a material uncertainty regarding its ability to continue as a going concern. However, post-acquisition, debt restructuring arrangements reduced total payables by RMB432 million, alleviating the immediate liquidity pressure. The acquisition results in the recognition of significant goodwill (approximately RMB1.12 billion) and intangible assets (approximately RMB103.6 million) on the pro forma balance sheet. While the pro forma combined net loss for the year was approximately RMB529 million, the inclusion of Times Good's revenue streams—especially AI computing power services which contributed RMB71.9 million in revenue—positions the combined entity to leverage growth in the AI sector. The transaction is expected to provide Times Good with ongoing financial and strategic support from Maase, as noted in the filing's going concern assessment.