Announcement on the Increase of Expected Daily Related Party Transaction Quota
Hengdian Group Dongci Co., Ltd. (hereinafter referred to as "the Company") announces the following regarding the increase of expected daily related party transaction quotas to regulate its related party transactions in accordance with the "Shenzhen Stock Exchange Stock Listing Rules" and other relevant regulations.
1. Overview of Daily Related Party Transactions
(1) Overview of Related Party Transactions
The proposal for the expected daily related party transactions for 2025 was approved at the 16th meeting of the 9th Board of Directors held on December 12, 2024, and was subsequently approved at the Company’s third extraordinary general meeting of shareholders in 2024. The proposal for the increase in expected daily related party transaction quotas was approved at the 21st and 23rd meetings of the 9th Board of Directors held on April 18, 2025, and August 19, 2025, respectively. Due to the needs of the Company's daily operations and based on the actual related party transactions from January to September 2025, as well as an analysis of the business activities planned with related parties in the fourth quarter, the Company expects to increase the transaction quota with related parties by 12 million yuan.
(2) Review Procedures
The proposal for the increase in expected daily related party transaction quotas was approved at the 25th meeting of the 9th Board of Directors held on October 24, 2025. The independent directors held a special meeting to review this related party transaction and expressed their opinions, which were agreed upon by all independent directors. According to the "Stock Listing Rules" and other relevant laws and regulations, this expected daily related party transaction matter is within the approval authority of the Board of Directors and does not require submission to the shareholders' meeting for review.
(3) Expected Types and Amounts of Related Party Transactions
The Company and all members of the Board of Directors guarantee that the content of the information disclosure is true, accurate, and complete, with no false records, misleading statements, or significant omissions.