hGears AG: Subsidiary hGears Schramberg GmbH files an application for the opening of insolvency proceedings under self-administration

hGears AG: Subsidiary hGears Schramberg GmbH files an application for the opening of insolvency proceedings under self-administration

Schramberg, 7 September 2026 – The management of hGears Schramberg GmbH, a subsidiary of hGears AG, has filed an application with the Local Court of Rottweil for the opening of insolvency proceedings under self-administration pursuant to Sections 270 et seq. of the German Insolvency Code (InsO). The aim is to advance the necessary restructuring of the Schramberg site within an orderly legal framework and to create the conditions for a viable structure for the future.

The business operations of hGears Schramberg GmbH are expected to continue following the filing of the application for the opening of insolvency proceedings. The management is expected to remain in office under the self-administration proceedings and steer the restructuring process.

The reason for the filing is the company’s inability to meet its payment obligations as a result of persistently insufficient production volumes and a cost base that is too high for the current level of business. Despite extensive structural, efficiency and cost-reduction measures already implemented, it has not been possible to establish the site as economically viable on its own under the changed market conditions. In particular, the persistently weak development of the e-Bike business area, which is particularly important for the Schramberg site, has resulted in significant underutilisation of the existing production structures.

The insolvency proceedings are limited to hGears Schramberg GmbH, which accounted for around 26% of Group revenue in the first half of 2026. hGears AG and the other operating subsidiaries with production sites in Padova (Italy) and Suzhou (China) are currently not affected and continue their business operations unchanged.

A domination agreement exists between hGears Schramberg GmbH and hGears AG. In connection with the insolvency proceedings, this may in principle result in financial effects for hGears AG, the nature and extent of which will depend on the further course of the proceedings.

“The economic and financial development leaves us no other choice but to file for insolvency proceedings under self-administration for hGears Schramberg GmbH. However, this opens up the possibility to implement the necessary structural changes and to develop a viable perspective for the site,” says Sven Arend, CEO of hGears AG. “At the same time, we want to ensure operational continuity for our customers and business partners to the greatest extent possible and create the conditions for a competitive setup in the long term.”

hGears AG will provide information on material developments as the proceedings progress.

Contact

hGears AG

Christian Weiz

Head of Investor Relations

Brambach 38

78713 Schramberg

T: +49 (7422) 566 222

E: christian.weiz@hgears.com

About hGears

hGears is a global manufacturer of mission-critical high-precision gears and components with a strategic focus on products for e-mobility. The products include gears, shafts and other mission-critical components that are used in electric drive systems for e-bikes and in electric and hybrid vehicles (EHV). In the e-bike sector, hGears AG is a leading European company in the supply of high-precision gear parts and components. hGears has three different business areas for which it develops and manufactures high-precision components: e-Bike, [e]-Mobility (primarily for premium and luxury cars, EHVs and powersports vehicles) and e-Tools.

hGears combines over 65 years of experience in advanced steel machining and state-of-the-art sintered metal production. This makes it one of the few companies in the world that can offer its customers both processes. hGears works together with its customers in a “co-development” role to design components and find technologically optimal solutions to satisfy the customer’s specifications. hGears' blue-chip customer base includes several major Tier 1 suppliers and original equipment manufacturers (OEMs). The company benefits from long-standing, stable and sustainable relationships with its customers, with many key customers being supplied for more than 20 years.

hGears is headquartered in Schramberg (Germany) and operates worldwide with production facilities in Schramberg (Germany), Padova (Italy) and Suzhou (China). Visit hGears on the Internet at: www.hgears.com