Tong Ren Tang Technologies renews key agreements with controlling shareholder

Tong Ren Tang Technologies Co. Ltd. announced the proposed renewal of its Distribution Framework Agreement and Master Procurement Agreement with Tong Ren Tang Holdings, its ultimate controlling shareholder. Both agreements, set to expire on December 31, 2025, will be renewed for a three-year term from January 1, 2026, to December 31, 2028. This renewal, along with proposed annual caps, is subject to independent shareholders' approval.

Under the renewed Distribution Framework Agreement, the proposed annual caps are RMB3,700m for 2026, RMB4,220m for 2027, and RMB4,820m for 2028. These caps reflect a historical increase in transaction amounts, with utilization rates of approximately 60% in 2023 and 75% in 2024. The Master Procurement Agreement's proposed annual caps are RMB360m for 2026, RMB400m for 2027, and RMB450m for 2028, following utilization rates of 37.50% in 2023 and 22.30% in 2024.

The company anticipates continued growth in sales and procurement volumes, driven by strategic initiatives, expansion of the Tong Ren Tang brand sales network, and efforts to enrich its product portfolio. Independent non-executive directors will review these continuing connected transactions to ensure they are on normal commercial terms and are fair and reasonable.