Xiabuxiabu Catering Management (China) Holdings Co., Ltd. (Xiabuxiabu) has signed a supplemental agreement with its connected party Tea Mi Tea (HK) Holdings, effective retroactively from 1 July 2026, eliminating the 5% revenue-sharing fee previously payable under their 2023 Framework Cooperation Agreement.
The original 2023 Agreement required Xiabuxiabu to remit 5% of total sales generated from its stores to Tea Mi Tea (HK) for operational support services and a non-transferable trademark licence. Under the new terms, Tea Mi Tea (HK) – wholly owned by Xiabuxiabu’s chairman Mr. Ho Kuang-Chi – has waived this payment for the remainder of the contract term. All other contractual provisions remain unchanged, and the agreement will still be subject to renewal upon expiry.
Management stated that the fee waiver is intended to support the company’s operations by reducing costs amid ongoing market challenges. The board, including independent non-executive directors, concluded that the revised terms are fair, reasonable and in the best interests of shareholders. Mr. Ho and non-executive director Ms. Chen Su-Yin abstained from the board vote due to their connected interests.
Given that the revised arrangement is now conducted at nil consideration, the continuing connected transactions are classified as de minimis under Chapter 14A of the Hong Kong Listing Rules and are fully exempt from further disclosure or shareholder approval requirements.
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