Sinofert Holdings Limited (297) announced a revision of the annual cap under its Information System Services Agreement for the year ending 31 December 2025. This agreement was originally signed on 13 May 2025 by Sinochem Fertilizer Company Limited, an indirect wholly-owned subsidiary of Sinofert Holdings Limited, and Sinochem Information Technology Co., Ltd., an indirect wholly-owned subsidiary of Sinochem Holdings.

Sinochem Fertilizer’s fees paid to Sinochem Information for information system services, such as system operations and maintenance, software licensing and procurement, system improvement, and artificial intelligence services, are now expected to exceed the original cap. As of 30 September 2025, the actual transaction amount reached RMB10,240,000, about 79% of the original RMB13,000,000 annual cap. Consequently, the board of Sinofert Holdings Limited has decided to raise the 2025 cap to RMB18,000,000.

The increase aligns with Sinochem Fertilizer’s plan to establish a digital procurement platform in the fourth quarter of 2025 to reinforce procurement and supply chain management. The move aims to strengthen systems integration and achieve cost reduction and efficiency gains. According to the announcement, the revision of the annual cap complies with Listing Rules requirements regarding continuing connected transactions, with applicable percentage ratios above 0.1% but below 5%, and therefore it is subject to reporting, announcement, and annual review requirements but exempt from independent shareholders’ approval.