Precision Tsugami (China) Corporation Limited (1651) Reports Renewal of Continuing Connected Transactions and Deed of Non-Competition Amendments

Bulletin Express03-03

Precision Tsugami (China) Corporation Limited (1651) issued an announcement dated 4 March 2026 detailing the proposed renewal of three existing agreements with its controlling shareholder, Tsugami Corporation, and an amendment to the Deed of Non-Competition. An Extraordinary General Meeting (EGM) is scheduled on 23 March 2026 to seek independent shareholder approval.

According to the announcement, the Company intends to renew three existing agreements, namely the Technology Licence Agreement, the Master Sales Agreement, and the Master Purchase Agreement, each for a new term up to and including 31 March 2029. The Technology Agreement renewal also includes an amendment, primarily replacing the non-exclusive license scope in regions outside the PRC, Hong Kong, and Taiwan with a focus on selling products to the controlling shareholder in Japan.

The announcement further discloses the proposed annual caps for the next three financial years:

• Technology Licence fees: RMB327.00 million, RMB404.00 million, and RMB502.00 million for the years ending 31 March 2027, 2028, and 2029, respectively.

• Sales to the controlling shareholder: RMB1,300.00 million, RMB1,600.00 million, and RMB2,000.00 million for the years ending 31 March 2027, 2028, and 2029, respectively.

• Purchases from the controlling shareholder: RMB455.00 million, RMB560.00 million, and RMB700.00 million for the years ending 31 March 2027, 2028, and 2029, respectively.

Additionally, the announcement outlines proposed amendments to the Deed of Non-Competition. The amendments clarify that the restricted scope of business applies primarily in the PRC, Hong Kong, and Taiwan and preserve the right to conduct limited inspections of sales networks to ensure compliance.

Shareholders are advised that Tsugami Corporation and its associates, holding approximately 65.89% of the Company’s issued share capital, will abstain from voting on the relevant EGM resolutions. Interested parties may refer to the Company’s circular for further details on the proposed renewals and amendment arrangements.

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