Nameson Holdings Limited (HK: 01982) has signed a new one-year Raw Materials Purchase Agreement for FY2026/27 between its subsidiaries—Hebei Nanguan Technology Co., Ltd. (Nanguan Tech) and M.ORO International Ltd.—and Hebei Yuteng Cashmere Products Co., Ltd.

Under the agreement, effective from 1 April 2026 to 31 March 2027, the two subsidiaries will source cashmere and related raw materials from Hebei Yuteng with an annual transaction cap of RMB560.00 million (approximately HK$632.80 million). Pricing must not exceed prevailing market rates or the prices offered to Hebei Yuteng’s other customers.

Hebei Yuteng qualifies as a connected person at the subsidiary level because it holds 45% of Nanguan Tech and is indirectly owned 51% by Mr. Ma Haitao and 49% by Mr. Ma Jiangtao, both directors of the purchasing entities. Consequently, the arrangement is classified as a continuing connected transaction under Chapter 14A of the Hong Kong Listing Rules. Having received board approval and confirmation from independent non-executive directors that the terms are fair, reasonable and on normal commercial terms, the deal is exempt from circular, independent financial advice and shareholders’ approval requirements pursuant to Rule 14A.101.

Historical procurement data indicate prior purchases from Hebei Yuteng of RMB574.30 million in FY2022/23, RMB547.80 million in FY2023/24 and RMB673.70 million in FY2024/25. For the ten months to 31 January 2026, purchases totaled RMB313.80 million. The new cap of RMB560.00 million sits below the FY2024/25 actual spend but comfortably above the pro-rated FY2025/26 run-rate.

Management expects the agreement to ensure a dependable supply of high-quality cashmere, supporting production schedules and quality control across Nameson’s knitwear operations. Internal safeguards include benchmarking Hebei Yuteng’s quotes against independent third-party pricing and regular management reviews to prevent cap exceedance.