Shuangdeng Group Co., Ltd. (Shuangdeng Group) has revised key continuing connected-transaction limits and entered a new framework purchase agreement, according to an exchange filing dated 25 March 2026.

Key Takeaways

1. 2025 Cap Breach • Actual purchases under the Shuangdeng Cable Framework Purchase Agreement reached RMB1.02 million in 2025, surpassing the original cap of RMB0.95 million by RMB0.07 million. • On an aggregated basis with Jiangsu Fushanda, 2025 transactions totaled RMB25.86 million, remaining below the combined cap of RMB26.15 million.

2. Higher Caps for 2026–2027 • Shuangdeng Cable: caps lifted from RMB0.998 million to RMB10.00 million for 2026, and from RMB1.048 million to RMB30.00 million for 2027. • Jiangsu Fushanda: caps raised from RMB26.50 million to RMB60.00 million for 2026, and from RMB27.80 million to RMB80.00 million for 2027. • Aggregated cap for the two connected suppliers rises to RMB70.00 million for 2026 and RMB110.00 million for 2027. • The percentage ratios remain below 5%, subjecting the transactions to reporting, announcement and annual-review requirements only.

3. New Jiangsu Weili Framework Purchase Agreement • Effective 25 March 2026 for two years. • Covers lithium iron phosphate and related services. • Annual cap set at RMB30.00 million for both 2026 and 2027. • Jiangsu Weili is deemed a connected person as 33.6227% of its shares are owned by a relative of Chairman Dr. Yang Rui; percentage ratios are below 5%, requiring disclosure but not independent shareholder approval.

4. Rationale for Cap Increases • Planned construction of new lithium-battery production facilities is expected to expand total capacity by over 50%, driving cable demand. • Sales of AIDC smart-computing-center energy-storage batteries surged 593% year-on-year in 2025, underpinning higher procurement of inter-cell connectors and copper bars. • Commodity-price inflation—copper and other metals rose 35% in 2025—adds further value pressure.

5. Enhanced Internal Controls • Designated personnel will monitor connected-transaction amounts monthly, with escalating reporting thresholds at 70%, 80% and 90% of each annual cap. • Additional training on Listing Rules compliance has been introduced for directors, senior management and relevant staff.

Regulatory Status

All revised and new caps fall within the 0.1%–5% range of the applicable percentage ratios under Chapter 14A of the HKEX Listing Rules, requiring only reporting, announcement and annual review. The cap breach in 2025 has been disclosed and rectified.