Texhong International inks services deal for Vietnam facilities

Texhong International Group Limited has entered into a new Master Supply and Services Framework Agreement with Texhong Industrial Park, effective from January 1, 2026, to December 31, 2028. This agreement covers wastewater treatment, utilities supply (steam, water, liquefied petroleum gas), and photovoltaic power plant power management services for Texhong's production facilities in Hai Ha Industrial Park, Vietnam. The industrial park, a connected person due to its ownership by Texhong's chairman and executive directors, will provide these services.

Under the agreement, charges for production wastewater treatment range from $0.30 to $0.85 per cubic meter, with pre-treatment services at $0.55 per cubic meter if required. Domestic wastewater treatment is set at $0.50 per cubic meter. Utilities will be supplied at $30 per tonne for low-pressure steam, $39 per tonne for medium-pressure steam, $0.30 per cubic meter for industrial water, and 28,000 dong per kilogram or 67,437 dong per normal cubic meter for liquefied petroleum gas. Photovoltaic power management fees will be 100 dong per kilowatt-hour.

The directors anticipate aggregate annual fees payable to Texhong Industrial Park under this agreement to be approximately 97 million yuan for 2026, 95 million yuan for 2027, and 99 million yuan for 2028. These transactions are subject to announcement and annual review requirements under Listing Rules Chapter 14A, but are exempt from independent shareholders' approval as applicable percentage ratios are below 5% and the largest annual cap exceeds HK$3,000,000.