VEDAN INT'L (02317.HK): New Continuing Connected Transaction Agreements with Vedan Taiwan

NewTimeSpace News: On 7 October 2026, Vedan International (Holdings) Limited (stock code: 02317) announced that, as the existing Taiwan agreements (the technical support agreement and the Taiwan sales agreement) will expire on 31 December 2026, the Company and Vedan Taiwan entered into new Taiwan agreements on 7 October 2026 on substantially the same terms as the existing agreements, each for a term of three years from 1 January 2027 to 31 December 2029.

Under the new Taiwan sales agreement, the Group will continue to sell products including glutamic acid, monosodium glutamate, fertiliser and feed products and cassava starch industrial products to the Vedan Taiwan group for use in Taiwan. Prices must be determined by reference to the prices charged by the relevant Group member to other independent customers, with no better price granted to the Vedan Taiwan group; management aims to maintain overall gross margins within approximately 12% to 18%, with prices reviewed at least once every six months. The cap under the new sales agreement is reduced from US$15,000,000 to US$7,000,000 (approximately HK$54,880,000).

Under the new technical support agreement, Vedan Taiwan has agreed to provide and/or procure other members of the Vedan Taiwan group to provide technical support services to the Group (including staff training and secondment of staff to the Group's production plant in Vietnam) to support product research and development and the development of advanced fermentation technology. The service fee is 1% of Vedan Vietnam's turnover during the relevant period, with an annual cap of US$2,500,000 (approximately HK$19,600,000).

Under the Listing Rules, Vedan Taiwan is one of the Company's controlling shareholders, indirectly holding approximately 33.62% of its entire issued share capital, and is therefore a connected person; as one or more applicable percentage ratios on an annual basis exceed 0.1% while all are below 5%, the transactions are subject to the reporting and announcement requirements but are exempt from the circular and shareholders' approval requirements under Rule 14A.76(2). Executive directors Mr. Yang Tou-Hsiung, Mr. Yang Cheng, Mr. Yang Kun-Hsiang, Mr. Yang Chen-Wen and Mr. Yang Kun-Chou, being members of the Yang family and deemed materially interested, abstained from voting on the relevant board resolutions.

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