Sanhua Intelligent Controls renews supply agreements with controlling shareholder

Zhejiang Sanhua Intelligent Controls Co., Ltd. has renewed its continuing connected transactions with Sanhua Holding Group, its controlling shareholder. New framework agreements were entered into on December 17, 2025, covering the supply of finished products by Sanhua Intelligent Controls to Sanhua Holding Group and the procurement of materials, power, and supplies by Sanhua Intelligent Controls from Sanhua Holding Group for the year 2026. This renewal follows the expiration of previous agreements on December 31, 2025.

The renewed 2026 product supply framework agreement estimates a maximum fee of RMB84.00m payable to Sanhua Intelligent Controls. The 2026 material procurement framework agreement projects a maximum fee of RMB108.00m payable by Sanhua Intelligent Controls. These transactions are exempt from independent shareholders’ approval as their highest applicable percentage ratios are below 5% but above 0.1%.

The company held an extraordinary general meeting and a board meeting on December 17, 2025, to approve these and other governance-related matters. Related directors abstained from voting on the connected transactions due to their affiliations with Sanhua Holding Group. The board confirmed the transactions were conducted on normal commercial terms and are in the best interests of the company and its shareholders.