China Daye Non-Ferrous Metals Mining Limited has approved higher annual caps for its continuing connected transactions with Yangxin Hongsheng Copper Industry, citing the delayed disposal of an engineering subsidiary and additional waste-treatment services.

The revised caps under the Yangxin Hongsheng Services Framework Agreement stand at RMB17.10 million for 2026, RMB17.68 million for 2027 and RMB17.53 million for 2028. These represent increases of 53.36%, 51.45% and 52.05%, respectively, over the previous limits.

Key drivers are: 1) Inclusion of services provided by Daye Nonferrous Design and Research Institute between 1 January and 14 August 2026, valued at roughly RMB3.57 million after the subsidiary’s disposal was pushed back to August 2026. 2) Daye Metal’s plan to supply arsenic sulfide slag and neutralization slag disposal services, estimated at RMB1.95 million in 2026 and RMB6.00 million per year in 2027–2028.

For the seven months ended 31 July 2026, actual transaction volume reached RMB9.03 million, staying within the former annual cap of RMB11.15 million.

Pricing methodology and other contractual terms remain unchanged. Internal controls include monthly transaction monitoring, a connected-transactions management committee, and periodic reviews by independent non-executive directors.

As the highest applicable percentage ratio for the revised caps exceeds 0.1% but remains below 5%, the transactions are subject to reporting, announcement and annual review requirements under Hong Kong Listing Rules, while exempt from independent shareholders’ approval.

Yangxin Hongsheng is 52% owned by Daye Metal and is therefore a connected subsidiary of China Daye. Executive directors Mr. Xiao Shuxin and Mr. Liu Yibin abstained from voting due to their roles at the parent company.