Chenqi Technology Limited (CHENQI TECH) will seek shareholder approval to lift the 2026 annual cap on fees receivable from Guangzhou Automobile Industry Group (GAIG) and its associates under the 2024 Products and Services Purchase and Provision Framework Agreement.
Key Points
1. Revised Cap • Existing cap for the year ending 31 December 2026: RMB 145.00 million. • Proposed revised cap: RMB 189.35 million, a 30.6% increase. • Board approval was granted on 21 October 2026; the change now requires independent shareholder consent at an extraordinary general meeting (EGM). GAIG and its associates (holding 35.52% of CHENQI TECH) will abstain from voting.
2. Drivers of the Increase • Accelerating shift of end-to-end autonomous-driving models from validation to scaled training. • Expansion in data scale: broader geographic coverage, more vehicle models, diversified sensor suites and higher operating mileage. • Rising scenario complexity: greater incidence of night-time, adverse-weather and mixed-traffic data, plus migration from 2D to multimodal (3D/4D/BEV) annotation, inflating unit costs. • Higher iteration and compliance costs driven by frequent model updates and data governance requirements.
3. Historical Transaction Volumes • FY 2024: RMB 89.14 million. • FY 2025: RMB 119.54 million. • 1H 2026 (unaudited): RMB 79.36 million. The company confirms the current cap has not yet been breached.
4. Governance and Regulatory Context • GAIG, via GAC and China Lounge, is a controlling shareholder; therefore, the framework agreement constitutes a continuing connected transaction under Chapter 14A of the Hong Kong Listing Rules. • The highest applicable percentage ratio exceeds 5%, triggering announcement, annual review and independent shareholder approval requirements. • An Independent Board Committee comprising all three independent non-executive directors will evaluate the proposal, with Gram Capital appointed as the Independent Financial Adviser.
5. Next Steps • A circular containing full details of the revised cap, the IFA’s opinion and the EGM notice will be dispatched by 18 November 2026, subject to potential extension. • Pending approval, other terms of the 2024 framework agreement remain unchanged.
Context
CHENQI TECH is a China-based mobility services platform offering ride-hailing, AI data and model solutions, HD maps, and fleet maintenance services. GAIG is a state-owned automotive conglomerate ultimately controlled by the Guangzhou Municipal People’s Government and Guangdong Province’s Department of Finance.
Comments