Hong Kong-listed Hengdeli Holdings Limited (Hengdeli, 03389) has renewed its framework for shop design and decoration services with Primetime Group, setting an annual transaction cap of RMB20.00 million for the year ending 31 December 2026.
The new one-year Master Services Agreement, signed on 17 April 2026 and effective from 1 January 2026, extends the parties’ 2017 arrangement on largely unchanged terms. Hengdeli will continue to provide shop design and fit-out services to Primetime, an entity 35% owned by former Hengdeli chairman Mr Zhang Yuping and therefore classified as a connected person under Hong Kong Listing Rules.
Historical volumes underpin the RMB20.00 million cap. Transactions totalled approximately RMB12.70 million in 2025, while dealings from 1 January to 17 April 2026 reached about RMB2.00 million, representing roughly 10% of the new limit.
Service fees will be set case-by-case through arm’s-length negotiations, calculated on an estimated-cost-plus basis with a minimum 10% profit margin for Hengdeli. The group has established multilayered internal controls—including quotation reviews, cross-checks by operating units, general-manager sign-off and oversight by both external auditors and the audit committee—to ensure pricing remains no less favourable than that offered to independent third parties.
Given that the applicable percentage ratios are above 0.1% but below 5%, the transactions fall under Chapter 14A of the Hong Kong Listing Rules and require public disclosure and annual review only; no shareholder approval or circular is necessary.
Hengdeli focuses on manufacturing high-end consumer accessories, building premium service platforms and providing international trading and supply-chain services. Primetime operates retail and wholesale wristwatch businesses and related after-sales services across China.
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