Red Star Macalline expands management services with new related-party agreement

Red Star Macalline Group Corporation Ltd. announced a new supplementary entrusted management agreement with Shaanxi Hongrui, a connected person, to provide management services from September 30, 2025, to September 29, 2026. This agreement, approved by the board on September 26, 2025, is priced at a fixed annual fee of RMB1.50 million, with the fee for the period calculated proportionally.

The company's management fee from Shaanxi Hongrui for the period ending December 31, 2025, is projected to be RMB1.88 million, and for the period from January 1, 2026, to September 29, 2026, it is RMB1.13 million.

This new agreement, similar to existing entrusted management agreements, is treated as a single transaction under the Listing Rules. As a result, the aggregate annual caps for entrusted management transactions will be adjusted. The total annual cap for 2025, including this new agreement, will increase from RMB12.78 million to RMB13.16 million, and for 2026, it will increase from RMB2.18 million to RMB3.31 million.

Given that the applicable percentage ratios for the proposed new annual caps for entrusted management transactions, on an aggregate basis, exceed 0.1% but are below 5%, these transactions are subject to annual review, reporting, and announcement requirements under Rule 14A.76 of the Listing Rules. They are exempt from the circular and independent shareholders' approval requirements.