SANY Heavy Industry Co., Ltd. Announces Potential Framework Agreement for Procurement of Services from SANY International Group

Key Points of the Announcement

• SANY Heavy Industry Co., Ltd. (the “Company”) has released inside information regarding a potential framework agreement for procuring services from SANY International Group, an entity controlled by a significant shareholder.
• The Company has historically engaged in such transactions, but the value was previously below the threshold requiring disclosure. Due to expected increases in procurement, these transactions are now likely to surpass the de minimis threshold and become subject to additional listing requirements.
• The potential agreement remains under negotiation and has not yet been executed. Investors are warned that the agreement may or may not materialize.
• If executed, the agreement will require reporting, annual review, and public announcement, but will not require independent shareholder approval under Hong Kong Listing Rules.

Detailed Overview for Investors

SANY Heavy Industry Co., Ltd. (“SANY” or the “Company”) has announced that it is considering entering into a Services Procurement Framework Agreement with SANY International Group. This potential agreement is a result of the Company’s increasing need to procure additional types of services, such as battery processing services, from SANY International Group to support its business operations.

SANY International Group is controlled by Mr. Liang Wengen, the founder, non-executive Director, and one of the controlling shareholders of SANY. As of the date of the announcement, Mr. Liang Wengen holds approximately 79.81% of SANY International. Due to this relationship, SANY International Group is considered a “connected person” under the Hong Kong Listing Rules, making transactions between the two groups “connected transactions.”

Implications for Shareholders and Potential Share Price Impact

• Historical Context: Previously, the value of services procured from SANY International Group was less than 0.1% of the highest applicable percentage ratios, qualifying these as de minimis transactions exempt from reporting and disclosure requirements.
• Potential Change: With the anticipated increase in procurement, the Company now expects the applicable percentage ratio to rise above 0.1% but remain below 5% for the year ending December 31, 2026. This shift subjects the transactions to the requirements of reporting, annual review, and public announcement, but not to the need for independent shareholder approval.
• Framework Agreement Status: As of the announcement date, the framework agreement has not yet been signed. The Board has approved the preparation of the agreement, but there is no certainty it will be executed.
• Price-Sensitive Information: The increased volume and scope of connected transactions may impact investor perception of SANY’s corporate governance, related party risk, and future cost structure. Any material agreement with a major shareholder-controlled entity can influence share price due to concerns about fairness, transparency, and potential conflicts of interest.
• Shareholder Advice: Shareholders and potential investors are strongly advised to exercise caution when dealing in the Company’s securities, as the finalization and execution of the agreement may affect the Company’s financial disclosures and could have a price impact.
• Future Announcements: The Company will issue further announcements when and if the framework agreement is executed, and will comply with all required listing rule obligations.

Board and Corporate Governance

The Board of SANY Heavy Industry comprises both executive and non-executive directors, including representatives of controlling shareholders and independent non-executive directors to oversee governance and mitigate conflicts of interest arising from connected transactions.

Summary

In summary, SANY Heavy Industry Co., Ltd. is on the verge of increasing its business dealings with SANY International Group, a connected entity, which will require greater transparency and regulatory compliance. The potential execution of a framework agreement relating to these services could impact the Company’s risk profile and share price, warranting close attention from investors.

Disclaimer: This article is prepared for informational purposes only and should not be considered as investment advice. Investors should conduct their own due diligence and consult financial advisors before making any investment decisions. The information herein is based on publicly available disclosures from SANY Heavy Industry Co., Ltd. as of April 29, 2026, and may be subject to change.

View SANY HEAVY IND Historical chart here