Overview of Related Transactions
- To further enhance the efficiency of fund utilization and leverage the financial expertise and resources of Sinomach Finance Co., Ltd. (hereinafter referred to as "Sinomach Finance"), Sinomach Precision Group Co., Ltd. (hereinafter referred to as "the Company") has signed a Financial Service Cooperation Agreement, approved at the Company's fourth extraordinary general meeting of shareholders in 2022. The agreement is valid for three years. Based on prior successful cooperation and the Company's operational needs, the Company intends to increase the transaction limit and sign a new Financial Service Cooperation Agreement with Sinomach Finance, also valid for three years.
- Sinomach Finance and the Company are both controlled by China National Machinery Industry Corporation (hereinafter referred to as "Sinomach Group"), which meets the criteria outlined in Article 6.3.3 of the Shenzhen Stock Exchange Listing Rules, thus constituting a related party transaction.
- At the eighth meeting of the eighth board of directors, related directors Jiang Wei, Zhang Jiang'an, Zhang Hong, and Tang Chao abstained from voting on this proposal, which was approved by a vote of 3 in favor, 0 against, and 0 abstentions. This proposal was previously reviewed and unanimously approved by the Company's independent directors at their second special meeting in 2025. This related party transaction must be submitted for approval at the 2024 annual general meeting, with related shareholder Sinomach Group abstaining from voting. The Company and all members of the board guarantee that the information disclosed is true, accurate, and complete, with no false records, misleading statements, or significant omissions.
- This related party transaction does not constitute a major asset reorganization as defined by the Administrative Measures for Major Asset Reorganizations of Listed Companies, nor does it constitute a restructuring listing, and does not require approval from relevant authorities.