Tianjin Pharmaceutical Da Ren Tang Group Corporation Limited has announced plans for its Health Technology Industry Development Branch to sign a warehousing and logistics cooperation agreement with Tianjin Pharmaceutical Group Taiping Medicine Co., Ltd.

The three-year contract will run until Jun, 30 2028 and caps total fees at no more than S$3.6 million (about 0.27% of the group’s latest audited net tangible assets of roughly S$1.33 billion).

Taiping Medicine is 56.65% owned by Tianjin Pharmaceutical Holdings, the listed group’s controlling shareholder, making the deal an interested person transaction under SGX Listing Manual Chapter 9. Four directors linked to the controlling shareholder abstained from voting, while the remaining five directors, including all independent directors, approved the agreement.

Because the transaction value falls below the 3% and 5% NTA thresholds, the deal does not require shareholder approval or immediate announcement under the Listing Manual. Combined with a previously announced annual distribution agreement of up to S$25 million, the company’s interested person transactions with the controlling shareholder group during 2026 total about S$28.6 million, or 1.88% of NTA, well below approval thresholds.

The company said the arrangement is aimed at securing stable services, reducing costs and improving efficiency as its existing third-party warehousing contract nears expiry. The new provider’s facilities are located near Tianjin Pharmaceutical Da Ren Tang’s production base, which is expected to lower transport costs.