CHINAHONGQIAO (01378.HK): Revises Annual Caps under Industrial Products Purchase Agreement, 2027 Cap Raised to RMB 26.24 Million

NewTimeSpace News: On 21 August 2026, China Hongqiao Group Limited (01378.HK) announced that the board expects the existing annual caps for the purchase of electrolyte powder and carbon powder under the industrial products purchase agreement to be insufficient to meet the group's production needs for the two years ending 31 December 2027, and therefore proposes to revise the existing annual caps. The industrial products purchase agreement was entered into with Weiqiao Xinxing Industrial on 14 February 2025, with a term ending 31 December 2027, under which the Weiqiao Xinxing Industrial group will sell industrial products, namely electrolyte powder and carbon powder, to the group.

For the year ending 31 December 2026, the estimated maximum purchase volume is 21,600 tonnes of electrolyte powder and 6,300 tonnes of carbon powder, with a revised annual cap of RMB 24,133,000; for the year ending 31 December 2027, 23,600 tonnes of electrolyte powder and 6,300 tonnes of carbon powder, with a revised annual cap of RMB 26,240,000 (both exclusive of VAT). The revised caps were determined by reference to the actual purchase volume in the six months ended 30 June 2026, estimated annual purchase volumes, the average unit price of RMB 1,041.08 per tonne for electrolyte powder and RMB 265.49 per tonne for carbon powder in the six months ended 30 June 2026, with a 10% buffer.

Weiqiao Xinxing Industrial is a wholly-owned subsidiary of Weiqiao Venture Group, which is a subsidiary of China Hongqiao Holdings Limited (the controlling shareholder of the company) and an associate of Mr. Zhang Bo (executive director), and is therefore a connected person of the company. The continuing connected transactions, together with those under the renewed production water supply agreement, the industrial waste treatment agreement and the supply and purchase framework agreement, are aggregated under Rule 14A.81 of the Listing Rules; as the highest applicable percentage ratio on an aggregated basis exceeded 0.1% but was below 5%, the transactions are subject to announcement, reporting and annual review requirements but exempt from the circular (including independent financial advice) and independent shareholders' approval requirements. The revised annual caps have been approved by the board; Mr. Zhang Bo, Mr. Yang Congsen, Mr. Zhang Jinglei, Ms. Zhang Ruilian and Ms. Sun Dongdong and/or their respective associates abstained from voting on the relevant board resolutions due to their substantial interests in Weiqiao Venture Group.

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