Zhuzhou CRRC Times Electric Co., Ltd. (Stock Code: 3898) has disclosed that its existing 2023-2025 CRRC Group Mutual Supply Agreement will expire on December 31, 2025. To ensure continuity, the company has entered into a new 2026-2028 CRRC Group Mutual Supply Agreement with CRRC Group, effective from January 1, 2026 to December 31, 2028.

Under the new agreement, both parties will continue to offer each other products and services such as rail transit equipment, technical and after-sales services, maintenance, and management solutions. Payment terms will be settled in cash or other methods as specified in individual contracts. The agreement outlines a pricing policy based on government-prescribed or guided prices (if applicable), bidding prices, market prices, or agreed prices with reference to actual costs plus reasonable profit.

The announcement highlights internal procurement and supply procedures—such as competitive bidding, regular price comparisons, and independent reviews—to ensure fairness and compliance. Historical transaction amounts indicate that for the nine months ended September 30, 2025, the Group purchased approximately RMB1,230.9 million worth of products and services from CRRC Group entities, while CRRC Group purchased around RMB7,099.5 million from the Group.

Looking ahead, the new annual caps for the transaction amounts have been set. Potential payments from the Group to CRRC Group are capped at RMB4,500 million, RMB6,700 million, and RMB10,100 million for 2026, 2027, and 2028, respectively. Potential payments from CRRC Group to the Group are capped at RMB16,300 million, RMB21,100 million, and RMB27,500 million for the same periods.

According to the announcement, these new caps take into account the anticipated growth in the railway and urban rail markets, expansion efforts in overseas markets, and the emerging industry business of the Group. Since CRRC Zhuzhou Institute Co., Ltd. is the controlling shareholder of Zhuzhou CRRC Times Electric, this arrangement remains a continuing connected transaction under Chapter 14A of the Listing Rules, subject to reporting, announcement, annual review, and approval requirements by independent shareholders. A circular with further details and an independent financial adviser’s opinion is scheduled to be sent to shareholders on or before November 20, 2025.