According to the latest announcement by Tong Ren Tang Technologies Co. Ltd. (Stock Code: 1666), a Supplemental Trademark Licence Agreement with China Beijing Tong Ren Tang Group Co., Ltd. (Tong Ren Tang Holdings) has been entered into. This agreement adjusts the scope of relevant subsidiaries authorized to use the “Tong Ren Tang” tradename and certain related trademarks and sets out new licence fee terms, prompting a revision of the original annual caps for the two years ending 31 December 2026 and 31 December 2027.
The original annual caps for 2026 and 2027 were RMB22,157,000 and RMB26,588,000 respectively. These have now been revised to RMB33,297,000 for 2026 and RMB39,958,000 for 2027. The adjustment factors include the estimated sales volume of Chinese medicine products, prevailing licence fee practices in similar arrangements, and the extended scope of subsidiaries included under the licence fee structure.
The Supplemental Trademark Licence Agreement and these revised caps constitute continuing connected transactions under Chapter 14A of the Hong Kong Listing Rules. As the highest applicable percentage ratio is above 0.1% but below 5%, the transactions are subject to announcement, reporting, and annual review requirements but do not require circular issuance or independent shareholders’ approval. Certain directors holding positions within Tong Ren Tang Group abstained from voting on the relevant board resolutions. Tong Ren Tang Technologies Co. Ltd. remains focused on leveraging the “Tong Ren Tang” brand’s recognition and goodwill to drive sales and enhance the value of its Chinese medicine products, supported by these updated agreements.
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