BEST LINKING (09882.HK): Renews Two Continuing Connected Transactions, Purchase Caps at HK$20mn Each

NewTimeSpace News: On 23 October 2026, Best Linking Group Holdings Limited (the "Company") announced that it referred to its announcements and circular dated 1 November 2024 and 22 November 2024 regarding the 2024 purchase framework agreement and the 2024 sales framework agreement. As those two agreements will expire on 31 December 2026, the board announced that on 23 October 2026 Best Linking entered into a new purchase framework agreement and a new sales framework agreement to renew the agreements and the annual caps.

The announcement disclosed that the new purchase framework agreement was entered into between Best Linking as buyer and Nanrong as supplier, covers the Group's purchase of heavy machinery from Nanrong for the period from 1 January 2027 to 31 December 2029, with each separate purchase order to be settled mainly within 90 days from the date of each invoice, and with pricing to be determined by reference to the prevailing market prices of heavy machinery or substantially similar products and having regard to the quantity and quality of comparable orders offered by other independent third-party suppliers, and in any event not less favourable to the Group than prices offered by other independent third-party suppliers; the agreement is conditional upon approval by the independent shareholders at an extraordinary general meeting. The proposed annual caps of the new purchase framework agreement are HK$20,000,000 each for 2027, 2028 and 2029; the annual caps of the 2024 purchase framework agreement were HK$20,000,000 (10 to 31 December 2024), HK$32,000,000 (2025) and HK$35,000,000 (2026), with historical transaction amounts of HK$14,364,000, HK$9,180,000 and HK$5,615,000 respectively (for 2026 up to 31 August, unaudited).

The Company stated that the new sales framework agreement was entered into between Best Linking as supplier and Nanrong as buyer, covers the Group's sale of machinery parts to Nanrong for the same period and on the same payment basis, with pricing to be determined by reference to the prevailing market prices of substantially similar machinery parts and having regard to the quantity and quality of comparable orders offered to other independent third-party customers; the proposed annual caps are HK$5,000,000 each for 2027, 2028 and 2029, while the annual caps of the 2024 sales framework agreement were HK$2,500,000 (1 November to 31 December 2024), HK$5,000,000 (2025) and HK$6,000,000 (2026), with historical transaction amounts of HK$1,111,486, HK$2,302,538 and HK$1,359,101 respectively (for 2026 up to 31 August, unaudited).

The Company stated that, as at the date of the announcement, Mr. Chen Yubin is the controlling shareholder of the Company through C Centrum and is an executive director; Mr. Chen Longbin is an executive director; the two are brothers; and Nanrong is indirectly wholly owned by their father, so Nanrong is a connected person of the Company and the transactions contemplated under the two agreements constitute continuing connected transactions under Chapter 14A of the Listing Rules. For the new purchase framework agreement, as the proposed annual caps exceed HK$10,000,000 and the relevant highest applicable percentage ratio exceeds 5% but is below 25%, the transactions and annual caps are subject to the announcement, reporting, annual review, circular (including independent financial advice) and independent shareholders' approval requirements, with the circular expected to be despatched on or before 25 November 2026; for the new sales framework agreement, as all relevant applicable percentage ratios are below 5% and the proposed annual caps are below HK$10,000,000, it is subject to the announcement, reporting and annual review requirements but exempt from the circular, independent financial advice and independent shareholders' approval requirements. The two agreements are not conditional on each other and will not be aggregated under Chapter 14A. The announcement also stated that the Group is a leading manufacturer of high-quality slewing bearings with production facilities in the PRC and a supplier of a comprehensive product line of machinery parts and machines, and that Nanrong is a Hong Kong-incorporated limited company principally engaged in the import and export of construction machinery (mainly brand-new excavators and generators from Japan and machinery parts). The board considers that Nanrong has over 25 years of established presence and strong networks in Japan, Korea and Singapore and is a distributor of brand-new construction machinery of brands including Sumitomo Corporation, IHI, Nippon Sharyo and Kubota; the new purchase framework agreement will facilitate the Group's acquisition of a range of products for resale to its customers, while the new sales framework agreement will help expand its customer base and increase revenue sources.