Changhong Meiling expands related party transactions, boosts treasury management

Changhong Meiling announced an increase in its estimated 2025 ordinary related party transaction limit by RMB397 million (excluding tax), citing business growth. This includes increased purchases from Sichuan Aichuang Technology Co., Ltd. (RMB140 million), Sichuan Changhong Tech-Jia Precision Manufacturing Co., Ltd. (RMB50 million), and expanded sales to CHANGHONG (HK) TRADING LIMITED (RMB195 million), as well as increased leasing activities with Sichuan Changhong Electric Co., Ltd. and its subsidiaries (RMB12 million). The total estimated related party transactions with Changhong Holding Group and its subsidiaries will not exceed RMB4.2 bn, while with Sichuan Changhong Electric Co., Ltd. and its subsidiaries, it will not exceed RMB21.5755 bn.

In a related development, Changhong Meiling will also engage in a bill pool business. The company plans to apply for specialized credit lines from three banks: China Everbright Bank Chengdu Branch (RMB300 million), Hangzhou Bank Chengdu Branch (RMB500 million), and Bank of Communications Anhui Provincial Branch (RMB1 bn), each for a one-year term. This initiative aims to centralize the management of receivables, improve cash flow, and optimize the use of working capital.

Both proposals were approved by the board of directors on November 5, 2025, and will be submitted for shareholder approval at the second extraordinary general meeting in 2025. Independent directors unanimously supported the related party transaction increase, affirming its necessity for daily operations and market-based pricing.