Red Avenue New Materials forecasts significant related-party transactions for 2026

Red Avenue New Materials Group Co., Ltd. announced a forecast of related-party transactions with Zhongce Rubber Group Co., Ltd. and its subsidiaries, totaling up to yuan 400 million for 2026. This projection will be reviewed at the company's third extraordinary general meeting of shareholders in 2025.

The projected yuan 400 million in sales to Zhongce Rubber Group and its subsidiaries for 2026 represents a 15.85% share of similar business operations. For comparison, actual sales for the period of January 1 to November 30, 2025, amounted to yuan 341.74 million, representing 15.98% of similar business operations. The increase in the 2026 forecast is attributed to adjustments based on downstream customer purchasing demand.

Zhongce Rubber Group is identified as a related party because Zhang Ning, chairman of Red Avenue New Materials, holds a director position within Zhongce Rubber. The transactions are stated to be normal business sales activities, conducted at market prices or through competitive bidding, ensuring fairness and preventing detriment to the company's financial status or independence. These transactions are crucial as Zhongce Rubber is a primary customer.