CHERY AUTO(09973.HK): Signed Auto Sales Framework Agreement with Guangdong Ruixun; Aggregate Annual Caps Totalling RMB1.55 Billion for 2026–2028

NewTimeSpace News: Chery Automobile Co., Ltd. issued an announcement dated 7 July 2026. On 7 July 2026, the Company signed an automobile sales framework agreement with Guangdong Ruixun Automobile Sales Service Co., Ltd., pursuant to which the Group will sell passenger vehicles to Guangdong Ruixun. The agreement is effective from the signing date until 31 December 2028, with respective annual caps of RMB250 million for 2026, RMB500 million for 2027 and RMB800 million for 2028, amounting to a total of RMB1.55 billion.

Pricing shall be determined with reference to the prevailing price lists and sales policies, based on market prices of comparable products and selling prices offered to independent third parties, to ensure that the terms are no more favourable than those available to independent third parties.

Guangdong Ruixun is controlled by Ms. Wang Laichun, a Non-executive Director of the Company, hence the transaction constitutes continuing connected transactions. As the highest applicable percentage ratios (excluding the profit ratio) exceed 0.1% but are below 5%, the transaction is subject to filing, annual review and announcement requirements, but exempt from independent shareholders’ approval. The Company stated that entering into the agreement enables it to leverage Guangdong Ruixun’s sales network to expand its domestic market reach. Ms. Wang Laichun, the Non-executive Director, abstained from voting on the relevant resolution.