Dear Partners and Valued Stakeholders,

We are pleased to announce that Buffalo Machinery has received a strategic equity investment from Hota Industrial Mfg. Group, the leading powertrain and gear component manufacturer in Taiwan, with over 90% of its production exported globally.

This capital injection has been fully executed, and funds have been successfully transferred. In addition, Hota has expressed strong interest in potentially increasing its investment in the future.

Hota Group is not only a global leader in transmission components but also has a growing presence in the CNC machine tool industry through its subsidiaries, KAO FONG MACHINERY and HARTECH, which specialize in comprehensive CNC solutions, including gear manufacturing systems. As Buffalo Machinery now joins this group, we look forward to collaborative opportunities in product development, sales, and operational synergies.

Despite this exciting development, Buffalo Machinery will maintain its existing operational structure, with Dr. Paul Chang continuing to serve as President, leading the company as we move forward.

Looking ahead, we anticipate collaborative opportunities in product development and sales between Buffalo Machinery and KAO FONG MACHINERY. By leveraging each other’s strengths, we aim to expand our market share and enhance global competitiveness.

We want to reassure all customers and partners that our full product portfolio, including both MICROCUT and AXILE brands, remains available and is being delivered as scheduled. Based on our business strategy, we will continue to manufacture certain models in Europe and others in Taiwan, with lead times varying from 3 to 6 months, depending on the machine type.

This capital increase was initiated primarily to support the construction of our new manufacturing facility in the Central Taiwan Science Park. The move also reflects our strategic response to the challenges posed by the post-pandemic economy and the ongoing Russia-Ukraine conflict.

We remain committed to delivering quality, innovation, and stability, and thank you for your continued trust and support.

Sincerely,
Dr. Paul Chang
Buffalo Machinery Co., Ltd.