CRCC High-Tech renews key sales agreement with controlling shareholder

CRCC High-Tech Equipment Corporation Limited has entered into a new Machinery Equipment and Accessories Sales Framework Agreement with China Railway Construction Corporation Limited (CRCC), its controlling shareholder. This agreement, effective from January 1, 2026, to December 31, 2028, renews a previous arrangement for the company to provide various railway track maintenance machines, equipment, and related services to CRCC and its associates. This transaction constitutes a continuing connected transaction under Listing Rules and requires Independent Shareholders' approval at an upcoming Extraordinary General Meeting (EGM).

The proposed annual caps for these transactions are set at RMB350m for each of the three years ending December 31, 2026, 2027, and 2028. These caps reflect expected transaction amounts (RMB221m, RMB204m, RMB177m, respectively) plus a RMB150m buffer for market fluctuations. Historical transaction amounts under the previous agreement for FYE2023, FYE2024, and the six months ended June 30, 2025, were RMB648.09m, RMB295.25m, and RMB98.63m, respectively, showing declining utilization rates of previous caps.

The pricing policy for the agreement is based on market prices for non-tailor-made products and a cost-plus-profit margin (not less than 15%) for tailor-made items, aligning with terms offered to independent third parties. The EGM, scheduled for September 30, 2025, will seek Independent Shareholders' approval for the agreement and the proposed annual caps.