Cirrus Aircraft (stock code: 2507) released an announcement on November 3, 2025, regarding a continuing connected transaction. According to the announcement, Cirrus Design Corporation, an indirect wholly owned subsidiary of Cirrus Aircraft, entered into an Extended Warranty Master Supply Agreement with Continental Aerospace Technologies, Inc. (Continental).
The arrangement allows Cirrus Design to purchase extended warranty coverage for engines supplied by Continental and installed on aircraft sold to customers. The agreement extends from the signing date to December 31, 2026, with an option for customers to request coverage beyond the standard three-year warranty. The agreed pricing is determined on an arm’s-length basis by reference to market rates for comparable extended warranty products in the aviation industry.
Historical transaction amounts for extended warranty purchases reached US$2,968,000 from the company’s listing date on July 12, 2024, to December 31, 2024, and US$4,928,000 from January 1, 2025, to September 30, 2025. The proposed annual caps for extended warranty purchases each calendar year are US$7,402,500 for 2025 (including amounts before the signing date) and US$7,402,500 for 2026.
As of the announcement date, Aviation Industry Corporation of China (AVIC) and its subsidiaries hold approximately 80.18% of Cirrus Aircraft’s issued share capital, making AVIC a controlling shareholder. Continental is a wholly owned subsidiary of Continental Aerospace Technologies Holding Limited, which is indirectly held as to approximately 46.40% by AVIC, rendering Continental a connected person under the Listing Rules. Because the applicable percentage ratios are above 0.1% but below 5%, the transaction requires reporting and announcement but does not require independent shareholders’ approval.
The announcement outlines internal control measures to ensure the terms remain fair and reasonable, including periodic reviews of pricing against independent third-party providers, continuous monitoring of transaction amounts, annual reviews by the company’s auditor, and annual assessments by the independent non-executive directors. The board views this agreement as beneficial to customers requesting additional coverage and expects it to enhance confidence in Cirrus Aircraft’s product offerings.