Beijing Tong Ren Tang unit inks significant related-party deals with parent

Beijing Tong Ren Tang Technology, a controlled subsidiary of Beijing Tong Ren Tang, has entered into three-year "Procurement Framework Agreements" and "Sales Framework Agreements" with its parent company, China Beijing Tong Ren Tang (Group) Co., Ltd. These agreements, effective from 2026 to 2028, are crucial for Tong Ren Tang Technology's daily operations, covering the procurement of raw materials, semi-finished goods, and finished products, as well as the sales of its own products to the Group.

The projected maximum annual value for procurement from the Group is CNY9,000 million in 2026, rising to CNY13,000 million by 2028. For sales to the Group, the projected maximum annual value is CNY14,000 million in 2026, increasing to CNY18,000 million by 2028. These figures represent a significant increase from 2024 actuals, which saw procurements of CNY3,277.60 million and sales of CNY5,338.04 million.

The transactions were approved by Beijing Tong Ren Tang's Board of Directors on September 29, 2025, with related-party directors abstaining. The pricing policies for these transactions are set to be fair and market-oriented, ensuring terms no less favorable than those with independent third parties. Tong Ren Tang Group, which holds 52.45% of Beijing Tong Ren Tang's shares, demonstrated strong financial health with total assets of CNY462.64 billion and a net profit of CNY27.53 million in 2024.