Q Technology renews key connected transactions, boosting future outlook

Q Technology (Group) Company Limited has renewed four continuing connected transaction agreements for a three-year term from January 1, 2025, to December 31, 2027. The renewed agreements involve Heyuan Youhua, Huangshi C-Flex Electronic, Heyuan CK, and Xiamen Zhonghui, all connected persons of the company. These transactions, on an aggregated basis, exceed 0.1% but are less than 5% of applicable percentage ratios, requiring reporting, announcement, and annual review but exempting them from independent shareholders' approval.

The Heyuan Youhua Purchase Agreement for VCM Components has proposed annual caps of RMB380,000,000 for each of the years 2025, 2026, and 2027, significantly increasing from the existing RMB280,000,000. Similarly, the Huangshi C-Flex Electronic Purchase Agreement for PCBs sets proposed annual caps at RMB200,000,000 for 2025, RMB210,000,000 for 2026, and RMB250,000,000 for 2027, up from an existing RMB200,000,000.

The Heyuan CK Supply Agreement for camera and fingerprint recognition modules maintains its annual cap at RMB5,000,000 across all three years. The Xiamen Zhonghui Supply Agreement for Automated Equipment and Software has proposed caps of RMB40,000,000 for 2025, RMB80,000,000 for 2026, and RMB40,000,000 for 2027. These renewals aim to secure crucial supplies, maintain product quality, and expand revenue streams in line with the group’s business development and market trends.