MICROTECH MED-B (02235.HK): Enters Raw Material Purchase Framework Agreement with Connected Person Hangzhou Shukang

NewTimeSpace News: On 21 August 2026, MicroTech Medical (Hangzhou) Co., Ltd. (02235.HK) announced that the company entered into a raw material purchase framework agreement with Hangzhou Shukang Intelligent Manufacturing Technology Co., Ltd. after trading hours the same day, under which the company may from time to time purchase relevant products from Hangzhou Shukang according to its business needs, and Hangzhou Shukang may also supply relevant products to the company, for a term from 21 August 2026 to 31 December 2026 (both days inclusive).

Product prices will be determined through negotiation under the principle of fair dealing, primarily by reference to current market prices of products of comparable quality and fees charged for similar past transactions; the company shall make monthly cash payments upon receipt of relevant invoices. The proposed annual cap (exclusive of PRC VAT) is RMB 7.5 million. From 1 January 2026 to 20 August 2026, the company had purchased relevant products from Hangzhou Shukang of approximately RMB 2.2 million; as all applicable percentage ratios were below 5% and the total consideration was below HKD 3 million, the relevant purchases are fully exempt under Rule 14A.76 of the Listing Rules.

Hangzhou Shukang is a wholly-owned subsidiary of Shukang Biomedical (Hangzhou) Co., Ltd., which is approximately 95.65% owned by Dr. Zheng Pan, an executive director of the company; Hangzhou Shukang is therefore a connected person of the company and the transactions constitute continuing connected transactions. As the applicable percentage ratio for the proposed annual cap exceeded 0.1% but was below 5%, the transactions are subject to reporting, announcement and annual review requirements but exempt from the independent shareholders' approval requirement. Dr. Zheng Pan, being deemed to have a material interest in the transactions due to his equity interest in Hangzhou Shukang, abstained from voting on the relevant board resolution. In the first half of 2026, the company's continuous glucose monitoring (CGM) business generated revenue of RMB 313.02 million, up 118.7% year-on-year; to secure stable supply of CGM raw materials and leverage scale procurement advantages, the company selected Hangzhou Shukang for the framework agreement.

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