Nanhua Futures Co., Ltd. (Nanhua Futures) has signed a supplemental agreement with its controlling shareholder, Hengdian Group Holdings Co., Limited (Hengdian Holdings), to lift the annual caps under their Procurement Framework Agreement from RMB1.00 million to RMB7.00 million for each of the financial years ending 31 December 2026 and 31 December 2027.

The Board cites accelerated business expansion and rising demand for goods and services—particularly in employee benefits, office infrastructure, and property management—as the primary drivers behind the seven-fold increase. Up to 27 March 2026, the Company had already incurred RMB0.46 million in related transactions.

Hengdian Holdings, which controls approximately 59.23% of Nanhua Futures’ equity, is deemed a connected person under Chapter 14A of the Hong Kong Listing Rules. The revised caps trigger reporting and announcement obligations but remain below the 5% threshold that would otherwise require independent shareholders’ approval.

Pricing for all procurements will continue to be determined on normal commercial terms, benchmarked against government-set prices where applicable or prevailing market rates from independent suppliers to ensure terms at least as favourable to Nanhua Futures.

Internal controls include quarterly monitoring by the finance department, annual audits, and ongoing oversight by independent non-executive directors to ensure compliance with the updated cap and pricing policies.

Management believes the revised limits secure reliable supplies, leverage Hengdian Holdings’ scale and ecosystem advantages, and align with the company’s growth strategy, thereby serving the interests of shareholders as a whole.