GCL Technology Holdings Limited (3800) has announced that its indirect wholly-owned subsidiary, Jiangsu GCL, entered into a Procurement Framework Agreement on 2 February 2026 with Henan GCL, ultimately held by the Zhu Family Trust. Under the agreement, Jiangsu GCL will purchase up to RMB46,920,000 (including tax) worth of mono-silicon crystal furnace quartz from Henan GCL between 1 January 2026 and 31 December 2026.
According to the announcement, one or more of the applicable percentage ratios for the procurement transactions exceed 0.1% but remain below 5%. As a result, they are classified as continuing connected transactions subject to reporting and announcement requirements under Chapter 14A of the Listing Rules but exempt from circular and independent shareholder approval. Directors with a material interest in the transaction, including beneficiaries of the Zhu Family Trust and certain individuals holding management positions in a trust-controlled entity, have abstained from voting.
The agreement aims to secure a competitive and stable supply of the key material for producing mono-silicon crystal, reduce production costs, and strengthen the Group’s position in the solar industry. The transaction price will be determined based on market rates, referencing prices published by the Silicon Industry Branch of the China Nonferrous Metals Industry Association. Jiangsu GCL’s financial department will regularly review and monitor the transactions, and internal control measures are in place to ensure pricing consistency and compliance with the Annual Cap.
GCL Technology Holdings Limited is principally engaged in the manufacturing and sale of polysilicon and wafers, as well as in developing, owning, and operating solar farms. Henan GCL specializes in producing high-purity quartz sand and quartz crucibles, which are seen as price-competitive and suitable for the Group’s production needs. The new procurement agreement is expected to bolster the Group’s capacity to meet the growing market demand and enhance cost efficiency in its operations.