Precious Dragon Technology Holdings Limited (Precious Dragon) and CHINA ALUMCAN (formal name: China Aluminum Cans Holdings Limited, stock code 06898) have agreed to both revise existing annual caps for their ongoing connected transactions and execute a new three-year Master Supply Agreement covering 2026-28.
Key Transaction Framework • 2026 Master Supply Agreement signed 9 Jun 2026, effective 1 Jan 2026-31 Dec 2028. • CHINA ALUMCAN will continue to supply monobloc aluminum aerosol cans (“Products”) to Precious Dragon; pricing to follow prevailing market rates, arm’s-length negotiation and parity with terms offered to independent third parties. • Either party may terminate the agreement with 30 days’ written notice; extension possible subject to Listing Rules compliance.
Revised Annual Caps (HK$’000) • FY 2026: 75,000 • FY 2027: 83,000 • FY 2028: 91,000
Drivers Behind the Upward Revision 1. Surge in orders: Transactions reached HK$22.70 million in the five months to 31 May 2026, already 78.2% of the existing HK$29 million cap for 2026, propelled by a new customer that contributed HK$17.10 million in purchases. 2. Market growth: Frost & Sullivan projects mainland China’s beauty industry retail sales to reach RMB 876.30 billion by 2028, a CAGR of 8.6% (2023-28); an approximate 10% annual growth rate was applied in setting the new caps. 3. Additional 10% buffer to absorb demand spikes, aluminium price volatility and growth in the car-detailing segment.
Historical Deal Flow • FY 2025 sales of Products: HK$12.20 million. • First five months of 2026: HK$22.70 million.
Compliance & Shareholder Approvals • Precious Dragon: revised caps exceed the 5% “major” threshold—requiring announcement, circular, independent financial adviser opinion and independent shareholders’ approval. • CHINA ALUMCAN: revised caps fall between the 25% and 100% thresholds—subject to the same provisions; both firms will convene separate extraordinary general meetings by 30 Jun 2026. • Controlling shareholder Mr. Lin Wan Tsang (approx. 74.94% of Precious Dragon and 69.97% of CHINA ALUMCAN) and his associates will abstain from voting. Independent board committees and external financial advisers have been appointed to opine on the fairness of the arrangements.
Strategic Context Precious Dragon focuses on automotive beauty, maintenance and personal-care aerosol products, while CHINA ALUMCAN specialises in monobloc aluminium cans for personal-care and pharmaceutical packaging. The reinforced supply arrangement aims to secure can supply for Precious Dragon’s expanding order book amid a buoyant domestic personal-care market.
No historical annual caps have been exceeded to date. Periodic reviews of pricing and internal controls will continue to underpin arm’s-length terms and safeguard shareholder interests, according to both boards.
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