Labixiaoxin Snacks Group Limited (1262) has entered into a Purchase Agreement with Jinjiang Longquan, allowing the group to purchase specific goods required for manufacturing and packaging from 17 September 2025 to 31 December 2027. Jinjiang Longquan is deemed a connected person due to its 50% ownership by a controlling shareholder of Labixiaoxin, making the agreement subject to the reporting and announcement requirements under Chapter 14A of the Listing Rules.

According to the announcement, historical purchases of the relevant products amounted to RMB13.4 million, RMB8.5 million, and RMB9.1 million for the three years ended 31 December 2024. From 1 January 2025 to 30 November 2025, the group’s purchases reached RMB10.0 million, while from the Commencement Date through 30 November 2025, purchases stood at RMB2.3 million. The proposed annual caps under the new agreement are HK$6.5 million for the period up to 31 December 2025 and HK$15.0 million each for 2026 and 2027.

The transaction terms will be based on prevailing market prices and are noted as no less favorable than those offered by independent third-party suppliers. The pricing is determined through at least two quotations from external vendors. Internal controls—including approval procedures, periodic checks by the financial and internal audit departments, and annual reviews by both independent non-executive directors and external auditors—have been established to ensure compliance with normal commercial terms and regulatory requirements.

Directors who share a close relationship with the controlling shareholder abstained from voting on the agreement. The Board considers that continuing to purchase from Jinjiang Longquan ensures a stable supply of quality products, which supports the group’s ongoing manufacturing operations. The announcement underscores that no shareholder approval is required because the relevant percentage ratios for these continuing connected transactions exceed 0.1% but remain below 5%.