Sinofert Holdings Limited (Stock Code: 297) has entered into a new Financial Services Framework Agreement with Sinochem Finance to increase the maximum daily outstanding deposit balance from RMB3 billion to RMB5 billion and extend the term for a further three years upon approval by independent shareholders. The existing financial services arrangement will cease once the new agreement takes effect.

The Deposit Services under the new agreement are classified as a major transaction and continuing connected transaction, as the applicable ratios in respect of the revised cap exceed 25% but are less than 100%. Therefore, the Deposit Services will be subject to reporting, announcement, and independent shareholders’ approval under Chapter 14 and Chapter 14A of the Listing Rules. Other financial services, including loan services and certain ancillary services, either qualify for exemptions or remain within lower thresholds.

According to the announcement, Sinofert Holdings reported solid financial performance. In the year ended 31 December 2024, it recorded a net profit of approximately RMB1,075 million and held over RMB5,000 million in cash and bank balances. For the six months ended 30 June 2025, it achieved a net profit of roughly RMB1,108 million and maintained around RMB5,302 million in cash and bank balances. With growing purchase and sales transactions involving Sinochem Group entities, demand for Sinochem Finance’s settlement services also expanded, prompting an increase in the deposit cap.

Sinochem Finance’s deposit interest rates are stated to be competitive and designed to support the Group’s liquidity requirements. Sinofert Holdings maintains the flexibility to use other financial institutions if they present more favorable terms. Shareholders will be asked to vote on the proposal at a special general meeting, and relevant details are set to be outlined in a circular to be distributed on or before 5 December 2025.