Datronix Holdings Limited (889) has published a circular regarding its proposed New Master Supply Agreement with Datatronics Romoland, covering the sale of magnetic components for a term from 1 January 2026 to 31 December 2028. Datatronics Romoland is wholly owned by the late controlling shareholder of the company, making the transaction a continuing connected transaction that requires independent shareholders’ approval.

Under the New Master Supply Agreement, the annual cap amounts are set at HK$40 million, HK$44 million, and HK$48 million for the three years ending 31 December 2026, 2027, and 2028, respectively. These figures are determined by reference to the historical transaction amounts with Datatronics Romoland, the expected future demand for magnetic components, and potential fluctuations in raw material and production costs.

The company has emphasized that the selling prices of magnetic components under this agreement will continue to be determined on a cost-plus pricing basis. Datatronics Romoland currently sources high-reliability magnetics primarily for medical and aviation applications, and the group states that such customized products carry higher profit margins compared to standard components.

A special general meeting is scheduled for 28 November 2025 to allow independent shareholders to consider and approve the New Master Supply Agreement and its associated annual caps. Shareholders holding approximately 72.32% of Datronix Holdings’ issued shares, being associates of the late controlling shareholder, will abstain from voting due to their interests in Datatronics Romoland.