Lion Rock Group revises Giunti transaction caps amid shifting demands

Lion Rock Group Limited is revising its annual caps for continuing connected transactions with Giunti for the two years ending December 31, 2026. The company expects the Books Transaction Fee to exceed its previous forecast, with the annual cap for Books Transaction Fee received/receivable increasing from HK$5.5m to HK$9.5m for both 2025 and 2026. Conversely, the Printing Transaction Fee is projected to decrease, leading to a reduction in its annual cap from HK$34m to HK$30m for the same period.

These revisions are driven by an estimated growing demand for Books Transaction, fueled by Quarto's increased European language books publishing, and a decreased demand for Printing Transaction in the first half of 2025 due to uncertainty around the European Union Deforestation Regulation (EUDR). Despite the initial decrease, Printing Transaction demand is anticipated to recover to 2024 levels or higher once EUDR is fully implemented in December 2025 and stable supply of compliant paper is secured.

The total annual cap for these transactions remains unchanged at HK$40m for both 2025 and 2026. The historical Books Transaction Fee received/receivable for the nine months ended September 30, 2025, was HK$4.691m, representing 85% of the original cap, while Printing Transaction Fee received/receivable was HK$14.134m, representing 42% of its original cap. The board considers these revised caps to be fair and reasonable, serving the best interests of the company and its shareholders.