China Railway Signal & Communication Corporation Limited (CRSC, 3969) announced the renewal of its Financial Services Framework Agreement between its subsidiary, CRSC Group Finance Limited (Finance Company), and the controlling shareholder, China CRSC Group. The current agreement, expiring on December 31, 2025, will be extended for three years from January 1, 2026, to December 31, 2028.
China CRSC Group, which holds approximately 62.78% of CRSC’s issued share capital, remains a connected person under Chapter 14A of the Listing Rules. According to the renewed agreement, Finance Company will continue providing deposit, credit, and other financial services to China CRSC Group, with the relevant annual caps set for 2026, 2027, and 2028.
Deposit services are fully exempt from reporting and other requirements under the Listing Rules due to their status as financial assistance on normal or better commercial terms without security over the Group’s assets. For credit services, the maximum daily credit balance made available to China CRSC Group has been capped at RMB500 million each year, and the applicable percentage ratio is above 0.1% but below 5%. Consequently, credit services are subject to reporting, annual review, and announcement requirements but exempt from independent shareholders’ approval. Other financial services are expected to fall below the minimum exemption level and remain exempt from disclosure, subject to further compliance if amounts surpass that threshold.
CRSC stated that renewing the agreement would enhance overall capital management, broaden financing channels, reduce costs, and support expansion. The company’s board considers the terms fair, reasonable, conducted on normal or better commercial terms, and in the ordinary course of business.
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