SHENGUAN HLDGS (00829.HK): Renews Four Continuing Connected Transaction Agreements; 2029 Caps up to RMB 590mn

NewTimeSpace News: On 9 October 2026, Shenguan Holdings (Group) Limited (the "Company") announced that it entered into four renewal agreements for continuing connected transactions, each for a term from 1 January 2027 to 31 December 2029 (three years).

The announcement disclosed that the four agreements and their proposed annual caps are: (i) the 2029 Exceltech Sale and Purchase Agreement, under which the Group agreed to supply products to Exceltech Food, Excellent International and Exceltech International, with proposed annual caps of RMB 4,000,000 for 2027, RMB 5,000,000 for 2028 and RMB 6,000,000 for 2029; (ii) the 2029 Junye Agreement, under which Wuzhou Junye agreed to supply packaging materials to the Group, with proposed annual caps of RMB 52,000,000, RMB 63,000,000 and RMB 75,000,000; (iii) the 2029 Zhongbai Agreement, under which Wuzhou Zhongbai agreed to supply packaging materials to the Group, with proposed annual caps of RMB 12,000,000, RMB 14,000,000 and RMB 17,000,000; and (iv) the 2029 Zhiguan Framework Agreement, under which Guangxi Zhiguan agreed to supply cattle hide and provide hide processing services to the Group, with proposed annual caps of RMB 410,000,000, RMB 490,000,000 and RMB 590,000,000. On pricing, prices for products supplied to the three Exceltech companies must not be lower than the average prices of similar products of the specific product categories exported by the Company to independent customers in Southeast Asia; prices for packaging materials purchased from Wuzhou Junye and Wuzhou Zhongbai must not be higher than those offered by two to three independent suppliers; and hide purchase prices and processing fees are determined by reference to independent suppliers' prices and market processing fees.

The Company stated that Exceltech Food, Excellent International and Exceltech International are each associates of Dato' Sri Lau, a non-executive Director and substantial shareholder; and Wuzhou Junye, Wuzhou Zhongbai and Guangxi Zhiguan are each associates of Ms. Zhou, an executive Director and controlling shareholder, so the transactions under each agreement constitute continuing connected transactions. As the applicable percentage ratios for the proposed annual caps of the 2029 Exceltech Agreement are below 5%, its transactions are subject to the reporting, announcement and annual review requirements but exempt from independent shareholders' approval; as the applicable percentage ratios for the aggregate proposed annual caps of the 2029 Junye and Zhongbai Agreements and for the 2029 Zhiguan Framework Agreement exceed 5%, their transactions are subject to the reporting, announcement, annual review and independent shareholders' approval requirements. An extraordinary general meeting will be convened for independent shareholders to consider and approve, and a circular is expected to be despatched on or before 2 November 2026; Maisie Capital has been appointed as independent financial adviser.

NewTimeSpace Disclaimer: All content herein is the original work of NewTimeSpace. Any reproduction, reprinting, or use of this content in any other manner must clearly indicate the source as "NewTimeSpace". NewTimeSpace and its authorized third-party information providers strive to ensure the accuracy and reliability of the data, but do not guarantee the absolute correctness thereof. This content is for reference only and does not constitute any investment advice. All transaction risks shall be borne by the user.