Launch Tech Company Limited has asked independent shareholders to approve substantial increases to the spending limits on purchases from connected party Shenzhen Smartsafe Tech under a supplemental framework purchase agreement.
The revised caps would more than double the original limits: RMB115.00 million for 2H 2026 (up from RMB50.00 million), RMB250.00 million for 2027 (up from RMB100.00 million) and RMB350.00 million for 2028 (up from RMB100.00 million).
Management attributes the uplift to an anticipated surge in demand for a newly developed product that integrates Advanced Driver Assistance Systems (ADAS) calibration with wheel-alignment functions. Commercial launch of the new model is slated for August 2026 at the Auto Glass Week exhibition, with initial orders exceeding 100 units worth more than RMB13 million. Launch Tech expects a “pull-through effect” on related product lines.
The purchases cover components, semi-finished goods and ODM/OEM items planned or specified by Launch Tech and manufactured by the Smartsafe group. Historical procurement from Smartsafe reached RMB83.00 million in 2025 and RMB54.75 million in 1H 2026, already consuming 99.5 % of the 1H 2026 cap.
Because approximately 47.25 % of Smartsafe is controlled by substantial shareholder Mr. Liu Jun—who also indirectly holds about 14.46 % of Launch Tech—Smartsafe is deemed a connected person. The enlarged caps therefore require approval under Chapter 14A of the Hong Kong Listing Rules. An Independent Board Committee of three independent non-executive directors and adviser Alpha Financial Group conclude the terms are fair and reasonable.
An extraordinary general meeting is scheduled for 30 September 2026 in Shenzhen. Mr. Liu Jun, executive director Mr. Liu Xin and their associates, who collectively own roughly 45.25 % of Launch Tech shares, will abstain from voting.
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