Tong Ren Tang Technologies Co. Ltd. (1666.HK) announced that its subsidiary, Beijing Tong Ren Tang Century Advertising Co., Ltd. (Tong Ren Tang Century Advertising), has renewed its Advertising Agency Framework Agreement with China Beijing Tong Ren Tang Group Co., Ltd. (Tong Ren Tang Holdings) for a term from 26 February 2026 through 31 December 2028. Under the renewed agreement, Tong Ren Tang Century Advertising continues to act as a non-exclusive advertising agent for Tong Ren Tang Holdings and its associates, providing services such as online and offline advertising, event planning, exhibitions, and related design and production.
The agreement sets proposed annual caps of RMB 50.00 million for each of the three years ending 31 December 2028. These caps were determined with reference to historical transactions and an anticipated increase in demand for advertising services, given the progressive recovery of the market economy and Tong Ren Tang Group's ongoing brand-building, product promotion, and channel expansion initiatives. Historical data show that actual transaction amounts in 2023, 2024, and 2025 did not exceed earlier annual caps but were impacted by economic conditions and cost-control measures.
As Tong Ren Tang Holdings is the ultimate controlling shareholder of Tong Ren Tang Technologies Co. Ltd., the renewed agreement constitutes continuing connected transactions under Chapter 14A of the Hong Kong Listing Rules. Because the applicable percentage ratios exceed 0.1% but remain below 5%, only reporting, annual review, and announcement requirements apply. The independent board directors reviewed the agreement, considering it to be on normal commercial terms, and certain directors with positions in Tong Ren Tang Holdings abstained from voting. Tong Ren Tang Chinese Medicine, a connected subsidiary of the company, is also included in the scope of the renewed agreement when engaging advertising agency services.
Tong Ren Tang Technologies Co. Ltd. is primarily involved in manufacturing and selling Chinese medicine. Tong Ren Tang Century Advertising’s business covers advertising design, production, and publication. Tong Ren Tang Holdings is a state-owned enterprise focused on processing, manufacturing, and selling Chinese medicinal and related products, with the State-owned Assets Supervision and Administration Commission of the People’s Government of Beijing Municipality ultimately managing its assets.