Vaillant Group (01608) announced that under the original equipment agreement, Vaillant (a wholly-owned subsidiary of the company), as a buyer, agreed to purchase overseas equipment from RRSHK (an independent third party supplier) for the sale of several of the Group's power systems.
In order to enjoy better payment terms for the balance of the purchase of such overseas equipment, Vaillant entered into the following arrangements on December 4, 2023:
(1) As the buyer, RRSHK as the seller, and China Technology Company (controlling shareholder) signed supplementary equipment agreements as a co-buyer. According to this, China Technology was added to various original equipment agreements as a co-buyer, and will be responsible for payment of the balance of overseas equipment purchased from Vaillant from RRSHK in accordance with the original equipment agreement (that is, about 7.9112 million euros, about HK$67.2449 million); and
(2) Vaillant signed an overseas procurement agreement as the buyer and China Technology Company as the seller. Based on this, Vaillant agreed to purchase overseas equipment from China Technology at the cost of overseas procurement (that is, 8.1775 million euros, about HK$69.509 million). The credit period is 180 days.
In addition, the Group is required to procure certain accessories, including cooling radiators and alternators, to sell, manufacture and integrate generator sets for customers based on the above power systems.
In order to enjoy better payment terms for the purchase of Chinese parts, on December 4, 2023 (after the trading period), Vaillant Shenzhen (a wholly-owned subsidiary of the company) and China Technology Company signed a China procurement agreement as the buyer and China Technology Company as the seller. According to this, VPower Shenzhen conditionally agreed to purchase Chinese parts from China Technology at Chinese procurement costs (that is, about RMB 108.697 million) (including VAT), with a credit period of 240 days.