Summary by Moomoo AI
Zhongwei Group Co., Ltd. (stock code: 00751) announced on March 6, 2024 that its indirect non-wholly-owned subsidiary Chongwei Cars has signed a procurement agreement with Nanjing Jinlong Passenger Cars. Under the agreement, Chongwei Cars will supply auto parts to Nanjing Jinlong Bus. The contract will run from 6 March 2024 to 31 December of the same year, with an annual transaction cap of RMB2000 million (approximately HK$2200 million). Since Mr. Huang holds approximately 52.53% of the shares in ZTE Group, Nanjing Jinlong Railway is considered to be a contact person of Mr. Wong and a related person of ZTE Group, so this transaction constitutes a continuing connected transaction. The annual cap of the transaction exceeds 0.1% but less than 5% and is declared and announced in accordance with Chapter 14A of the Listing Rules, but is exempt from the requirement of independent shareholder approval. The Board of Directors (including the independent non-executive directors) considers that the terms of the acquisition agreement are fair and reasonable and are in the overall interests of the Company and its shareholders.