APAC Resources renews management services with AGL through 2028

APAC Resources Limited announced the renewal of its existing agreement with Allied Group Limited (AGL) for management and administrative services. Effective from January 1, 2026, until December 31, 2028, the agreement extends the previous arrangement to cover the sharing of administrative and management services on a cost-reimbursement basis. AGL indirectly holds approximately 47.29% of the company, making this a continuing connected transaction under Listing Rules.

The annual caps for the management services payable by the group to AGL are set at HK$2.9 million for 2026, HK$3.19 million for 2027, and HK$3.51 million for 2028. Historically, payments for management services were HK$2.735 million in 2023, HK$2.574 million in 2024, and HK$2.15 million for the first nine months of 2025. These caps were determined considering historical figures, the group's operational scale, anticipated growth, and expected increases in management staff remuneration.

While the administrative services sharing is fully exempt under Listing Rules, the management services portion is subject to reporting, announcement, and annual review requirements due to percentage ratios exceeding 0.1% but remaining below 5%, thus exempting it from independent shareholders' approval. The directors view this arrangement as fair, reasonable, and beneficial, promoting economies of scale and cost efficiency.