Freetech Road Recycling Technology (Holdings) Limited (Stock Code: 6888) has released details of several subscriptions of structured deposit products made by its wholly-owned subsidiaries, Freetech Recycling and Nanjing Freetech, during the current financial year. These structured deposits were offered by multiple financial institutions in the People’s Republic of China (PRC), including Jiangsu Bank, China Zheshang Bank, China Merchant Bank, Bank of China, CITIC Bank, and Nanjing Bank.
The announcement indicates that certain subscriptions have triggered the reporting and announcement requirements as disclosable transactions under Chapter 14 of the Listing Rules, as the highest applicable percentage ratio exceeds 5% but is below 25%. Meanwhile, for specific CITIC Bank subscriptions where the highest applicable percentage ratio exceeded 25% but remained below 100%, they qualify as major transactions, also subject to shareholders’ approval requirements under Chapter 14 of the Listing Rules. The company’s controlling shareholders—who collectively hold approximately 50.30% of the issued shares—have provided written confirmations ratifying these major transactions, negating the need for an extraordinary general meeting.
According to the announcement, Freetech Road Recycling Technology (Holdings) Limited subscribed to these products to optimize the use of surplus cash from its business operations. The chosen structured deposits aim to balance liquidity, maintain a low risk profile, and achieve returns higher than those offered by standard bank deposits. All the structured deposit products are principal-guaranteed with an expected annualized return, varying from 0.7% to 2.5% based on the product terms.
In terms of compliance, the announcement highlights prior non-compliance with the Listing Rules due to a misunderstanding by certain finance officers who equated structured deposit products with fixed deposits. The company became aware of this issue in mid-September 2025 and has since taken measures to strengthen internal controls, including updated internal policies and half-yearly training sessions for directors and senior management to reinforce Listing Rules requirements. A circular containing further details is expected to be dispatched to shareholders on or before December 5, 2025.
Freetech Road Recycling Technology (Holdings) Limited is engaged in the manufacturing and sale of road maintenance equipment and the provision of road maintenance services in the PRC. Its subsidiaries, Freetech Recycling and Nanjing Freetech, are respectively focused on road maintenance services and the manufacturing and sale of road maintenance equipment. The company confirms that the relevant financial institutions involved in these structured deposits are independent third parties under the Listing Rules.