Q Technology (Group) Company Limited (Stock Code: 1478) disclosed the renewal of its continuing connected transaction agreements involving Heyuan Youhua Micro Electronic Technology Company Limited, Huangshi C-Flex Electronic (Huangshi) Ltd., Heyuan CK Telecom Limited, and Xiamen Zhonghui Microelectronics Co., Ltd. The new agreements, effective from January 1, 2025, through December 31, 2027, replace existing arrangements and are primarily focused on the purchase and supply of electronic components, camera modules, fingerprint recognition modules, and automated equipment and related software.

According to the announcement, Q Technology projects higher demand for mid-to-high-end camera modules, driven by expanding applications in smartphones, automobiles, drones, and other smart terminals. Consequently, annual caps under the agreements have been increased to accommodate the Group’s expected purchasing and production needs. For instance, the proposed annual caps under the Heyuan Youhua Purchase Agreement will be raised to RMB380 million each year for 2025, 2026, and 2027. The Huangshi C-Flex Electronic Purchase Agreement also sets new annual caps ranging from RMB200 million to RMB250 million over the same period.

Pricing for these transactions will continue to be based on prevailing market rates, taking into account factors such as comparable quotes from independent third parties, cost of raw materials, and quality requirements. Q Technology’s Board states these arrangements fall within its ordinary business scope and are conducted on normal commercial terms no less favorable than those offered by independent suppliers. The announcement further indicates that the arrangements comply with relevant requirements under Chapter 14A of the Listing Rules, requiring reporting, announcement, and annual review, but exempting independent shareholder approval.

Q Technology is principally engaged in designing, manufacturing, and selling camera modules and fingerprint recognition modules for intelligent mobile terminals, Internet of Things devices, and smart vehicles, alongside research and development of automated equipment and software. The connected counterparties noted in the announcement are engaged in providing electronic components, printed circuit boards, camera modules, and automation solutions in line with Q Technology’s operations and strategic focus. The company’s Board believes the renewed agreements will facilitate stable product supply, support the Group’s cost management, and bolster its technological development plans for the years ahead.