Taoping Signs Letter of Intent to Acquire Alphalion Holding, Significantly Bolsters AI-Driven Digital Ecosystem

Rhea-AI Summary

Taoping (NASDAQ: TAOP) entered a non-binding Letter of Intent to acquire 100% of Alphalion Holding, subject to due diligence, negotiation of a definitive agreement, and customary closing conditions. The LOI leaves purchase price and payment method to be determined and will automatically terminate if the transaction is not completed by October 31, 2026. Alphalion Holding holds over 60 core patents and operates across three domains: embodied robotics, AI servers, and composite new materials, including an approximately 80.5% stake in Dongguan Yuanchuan Composite Materials. Taoping said the deal aims to broaden hardware capabilities and accelerate AI-robotics integration into industrial applications.

Positive

• LOI to acquire 100% equity of Alphalion Holding
• Alphalion backed by >60 core patents
• Alphalion operates in 3 domains: robotics, AI servers, composite materials
• Alphalion holds ~80.5% stake in Dongguan Yuanchuan Composite Materials

Negative

• LOI is non-binding; no assurance transaction will be completed
• Purchase price and payment method not yet determined
• LOI automatically terminates if not completed by October 31, 2026

Insights

M&A Strategist

LOI to buy Alphalion is strategically logical but remains non-binding; key outcomes hinge on due diligence and definitive terms.

Taoping proposes to acquire 100% of Alphalion Holding under a non-binding LOI dated Oct. 17, 2025, with the LOI lapsing on Oct. 31, 2026. The LOI sets only process milestones; it does not fix price, payment method, or binding obligations.

Major near-term dependencies include completion of due diligence, negotiation of a definitive agreement, and satisfaction of customary closing conditions. Those items will determine transaction size, financing needs, and timing.

Watch for three concrete milestones: announcement of a definitive agreement, disclosed purchase price and payment structure, and closing or termination by Oct. 31, 2026. Expect materiality to resolve when those items appear.

Technology Integration Analyst

The target strengthens AI-robotics capabilities and IP depth, but operational impact depends on validated assets and integration plans.

Alphalion Holding claims over 60 core patents and businesses in embodied robotics, AI servers, and composite materials. If accurate, those assets could broaden Taoping's hardware and AI integration runway.

Risks center on asset quality, patent scope, and subsidiary ownership structure across Hong Kong, mainland China, and Singapore. Integration will require clear mapping of patents, customer contracts, and manufacturing links.

Trackable near-term items include due diligence findings, confirmation of the patent portfolio, and any disclosed technology transfer or integration roadmaps within the next 12 months to Oct. 31, 2026.

SHENZHEN, China, Oct. 17, 2025 /PRNewswire/ -- Taoping Inc. (Nasdaq: TAOP, the "Company"), a provider of innovative smart cloud platform services and solutions, today announced that it has entered into a non-binding Letter of Intent ("LOI") with the shareholders of Alphalion Holding Limited ("Alphalion Holding") to acquire 100% of its equity interests. The proposed acquisition remains subject to the completion of due diligence, negotiation and execution of a definitive agreement, and satisfaction of customary closing conditions. There can be no assurance that the parties will enter into a definitive agreement or that any transaction will be consummated. Under the LOI, the parties have agreed to determine the purchase price and payment method in the definitive agreement to be negotiated following the completion of the relevant due diligence. The LOI will automatically terminate if the transaction is not completed by October 31, 2026.

The proposed acquisition represents another significant milestone in Taoping's ongoing strategic expansion of its powerful AI-driven digital ecosystem. It is expected to further strengthen Taoping's robust technological infrastructure, broaden its proprietary hardware capabilities, and accelerate the integration of artificial intelligence into popular real-world industrial applications.

Alphalion Holding is a technology enterprise group backed by over 60 core patents. It has successfully expanded its business from China's high-end manufacturing into a conglomerate operating across three key domains: embodied robotics, AI servers, and composite new materials. Alphalion Holding is synergistically leveraging its technology expertise across its three key domains to build a globally leading ecosystem in embodied robotics. http://alphalion.hk/

Alphalion Holding, a limited liability company incorporated under the laws of Hong Kong, directly holds Alphalion Holding Management (Shenzhen) Co., Ltd. in mainland China and Diamondcarbon Holdings Pte. Ltd. in Singapore. It also indirectly controls Alphalion Technology (Zhejiang) Co., Ltd., Alphalion Technology (Shenzhen) Co., Ltd., and Shenzhen ChipStone Ruida Technology Co., Ltd., along with an approximately 80.5% stake in Dongguan Yuanchuan Composite Materials Co., Ltd.

Mr. Jianghuai Lin, Chairman and CEO of Taoping, said, "As use cases around AI continue to rapidly expand, our proposed acquisition of Alphalion Holding marks another important strategic step in expanding Taoping's addressable market, strengthening our solutions portfolio and accelerating growth. The world is at an exciting, pivotal stage of convergence between AI and robotics. We are focused on closely aligning with global technology trends to leverage our position as a next-generation digital-economy pioneer. Through this acquisition, we aim to meaningfully strengthen our AI-robotics footprint, enhance operational synergies, and create greater long-term value for our shareholders."

About Taoping Inc.

Taoping Inc. (Nasdaq: TAOP) has a long history of successfully leveraging technology in the development of innovative solutions to help customers in both the private and public sectors to more effectively communicate and market to their desired targets. The Company has built a far-reaching city partner ecosystem and comprehensive portfolio of high-value, high-traffic areas for its products, which are aligned together with Taoping's smart cloud platform, cloud services and solutions, new media and artificial intelligence. For more information about Taoping, please visit http://en.taop.com. You can also follow us on X.

Safe Harbor Statement

This press release contains "forward-looking statements" that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release, such as statements regarding our estimated future results of operations and financial position, our strategy and plans, and our objectives or goals, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. We have attempted to identify forward-looking statements by terminology including "anticipates," "believes," "can," "continue," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "should," or "will" or the negative of these terms or other comparable terminology. Our actual results may differ materially or perhaps significantly from those discussed herein, or implied by these forward-looking statements. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: our potential inability to achieve or sustain profitability or reasonably predict our future results, the effects of the global pandemic or other health crisis, the emergence of additional competing technologies, changes in domestic and foreign laws, regulations and taxes, uncertainties related to China's legal system and economic, political and social events in China, the volatility of the securities markets; and other risks including, but not limited to, those that we discussed or referred to in the Company's disclosure documents filed with the U.S. Securities and Exchange Commission (the "SEC") available on the SEC's website at www.sec.gov, including the Company's most recent Annual Report on Form 20-F as well as in our other reports filed or furnished from time to time with the SEC. The forward-looking statements included in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statements, other than as required by applicable law.

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SOURCE Taoping Inc.

FAQ

What did Taoping (TAOP) announce on October 17, 2025 regarding Alphalion Holding?

Taoping announced a non-binding LOI to acquire 100% of Alphalion Holding, subject to due diligence and a definitive agreement.

Is the Taoping (TAOP) acquisition of Alphalion final and binding?

No. The LOI is non-binding, with the purchase price and payment method to be determined after due diligence.

What is the LOI deadline for Taoping's proposed acquisition of Alphalion (TAOP)?

The LOI will automatically terminate if the transaction is not completed by October 31, 2026.

How many patents does Alphalion Holding have in the Taoping (TAOP) deal announcement?

Alphalion Holding is described as being backed by over 60 core patents.

Which business domains does Alphalion operate in according to Taoping (TAOP)?

Alphalion operates across embodied robotics, AI servers, and composite new materials.

What subsidiaries or stakes does Alphalion Holding control in the Taoping (TAOP) announcement?

Alphalion directly or indirectly controls several entities in China and Singapore and holds ~80.5% stake in Dongguan Yuanchuan Composite Materials.