Hong Kong – 29 September 2026 – China Risun Group Limited (China Risun; 01907) has executed supplemental agreements with connected party Xuyang Holding to substantially raise the annual caps for two sets of continuing connected transactions covering 2026-2027.
The Project Services Supplemental Agreement lifts the cap on project design, construction management and EPC services from RMB0.50 billion to RMB1.10 billion (exclusive of tax) for each of the financial years ending 31 December 2026 and 2027. Utilisation has already reached 93.8% of the former limit within the first eight months of 2026, after RMB468.80 million of fees followed RMB410.50 million in 2025. Management forecasts a further RMB547.0 million of service spending for the remainder of 2026, driven chiefly by accelerated construction of large-scale battery-materials facilities acquired via Tianjin Binhai Energy & Development, and has built in an 8% buffer for cost volatility.
Under the Integrated Procurement Supplemental Agreement, the ceiling for purchasing water-treatment chemicals, thermal coal, steel, building materials, catalysts and related technical services rises from RMB0.40 billion to RMB0.60 billion (exclusive of tax) for each of 2026 and 2027. Actual spending totalled RMB159.40 million in 2025 and RMB141.80 million in the eight months to 31 August 2026. The higher limit reflects expected procurement needs of about RMB412.0 million for the balance of 2026, plus an 8% contingency for price and demand fluctuations linked to the Group’s rapid expansion into new-energy battery materials.
Both Xuyang Holding agreements are classified as continuing connected transactions under Chapter 14A of the Hong Kong Listing Rules. As revised caps exceed the 5% applicable percentage ratios, the transactions require reporting, announcement, annual review and independent shareholders’ approval. An extraordinary general meeting will be convened; supporting documentation, including an Independent Board Committee letter and advice from Gram Capital, is slated for dispatch to shareholders on or before 23 October 2026.
China Risun cites Xuyang Holding’s two-decade track record in project execution and materials supply, its specialised engineering qualifications and familiarity with the Group’s operating standards as key advantages. Competitive tendering, third-party price benchmarking and quarterly compliance reviews are in place to ensure arm’s-length terms. Executive directors Mr Yang Xuegang and Ms Lu Xiaomei, who wholly own Xuyang Holding, alongside Mr Yang Lu, have abstained from board voting on the supplemental agreements.
China Risun remains one of the PRC’s largest integrated producers of coke, refined chemicals and new-energy products, with expanding operations in Hebei, Inner Mongolia, Shandong, Jiangxi and Indonesia.