Launch Tech Signs RMB250 Million Connected-Purchase Framework with SmartSafe Tech Through 2028

Bulletin Express06-30

Launch Tech Company Limited announced a new Framework Purchase Agreement with Shenzhen SmartSafe Tech Co., Ltd. covering components, semi-finished goods and OEM products required for its automotive diagnostics and repair business from 1 July 2026 to 31 December 2028.

Key terms • Counterparties: Launch Tech (purchaser) and SmartSafe Tech together with its subsidiaries (supplier). • Contract period: 2.5 years. • Nature of goods: tailor-made parts to be further configured and assembled by Launch Tech for end-product sales. • Pricing: benchmarked against (i) prices offered by SmartSafe to third parties and (ii) prevailing market levels to ensure terms are no less favourable than those from independent suppliers.

Proposed annual caps (ex-VAT) • H2 2026: RMB50.00 million • FY 2027: RMB100.00 million • FY 2028: RMB100.00 million Total potential spending over the term reaches RMB250.00 million.

Historical utilisation under the expiring 2024–H1 2026 framework demonstrates rising demand: actual purchases were RMB32.00 million in 2024, RMB83.00 million in 2025 and RMB42.00 million in the five months to 31 May 2026, against respective caps of RMB80.00 million, RMB94.00 million and RMB44.00 million.

Connected-party profile Approximately 47.25 % of SmartSafe is controlled by Mr. Liu Jun, who also owns 40 % of Langqu, a 14.46 % shareholder of Launch Tech, rendering SmartSafe an associate of a substantial shareholder and therefore a connected person under HKEX Listing Rules.

Regulatory implications Because each applicable percentage ratio for the proposed caps exceeds 0.1 % but is below 5 %, the transactions are classified as continuing connected transactions subject to announcement, reporting and annual review requirements only; shareholder approval and circular issuance are not required.

Internal controls Launch Tech will apply market-quote benchmarking, semi-annual supplier evaluations, audit committee oversight and annual external-auditor reviews to ensure pricing remains on arm’s-length, market-comparable terms and that yearly caps are not exceeded.

Strategic rationale Management cites SmartSafe’s proven capability to meet Launch Tech’s specialised design specifications, the need for uninterrupted supply of critical components, and cost efficiencies from an established partnership as primary reasons for renewing and expanding the procurement arrangement.

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