Xi’an Kingfar Property Services Co., Ltd. (stock code: 1354) reported that on 30 October 2025, its wholly owned subsidiary Xi’an Jiatai Property Management Service Co., Ltd. (Jiatai Property) entered into a Procurement Framework Agreement with Xi’an Kingfar Supply Chain Operation Trading Co., Ltd. (Kingfar Supply Chain). Effective from 1 November 2025 to 31 December 2025, this agreement covers the purchase of certain food ingredients, including meat, to meet Jiatai Property Group’s operational needs in providing value-added food ingredient delivery services to designated schools.
Under the agreement, Kingfar Supply Chain will supply goods based on specific purchase orders setting out terms such as product price, delivery schedule, and quality standards. The proposed annual cap for these transactions from November to December 2025 is set at RMB9 million. According to disclosed internal control provisions, the transaction price must be determined according to prevailing local wholesale market rates or reputable market information, ensuring that pricing and terms are no less favorable than those available from independent third-party suppliers.
Kingfar Supply Chain is wholly owned by Xi’an Kingfar Group, one of the controlling shareholders of Xi’an Kingfar Property Services. Consequently, the transaction constitutes a continuing connected transaction under Chapter 14A of the Listing Rules, as the largest relevant percentage ratio exceeds 0.1% but remains below 5%. It is therefore subject to announcement, annual reporting, and annual review requirements, though independent shareholders’ approval is not necessary given that the transaction is conducted on normal commercial terms.
Board resolutions indicate that entering into the Procurement Framework Agreement aims to help Jiatai Property secure a stable supply of food ingredients, strengthen quality control, and maintain competitive procurement prices, thereby supporting revenue growth initiatives and optimizing business structure. The board of directors affirms that the arrangement is fair and reasonable, conducted on normal commercial terms, and serves the interests of Xi’an Kingfar Property Services and its shareholders.