China ZhengTong Auto Services Holdings Limited (ZhengTong Auto) has entered into a Security and Cleaning Services Framework Agreement with Xiamen ITG Urban Services Group Co., Ltd. on 1 June 2026. The agreement covers all security and cleaning requirements for properties owned or used by ZhengTong Auto from 1 June 2026 to 31 December 2028.
Key terms • Annual caps: fees payable to ITG Urban Services are capped at RMB10.00 million per year, comprising up to RMB7.00 million for security services and up to RMB3.00 million for cleaning services. • Pricing: charges will be determined through arm’s-length negotiations, benchmarked against quotations from independent third parties, and must not exceed market rates for comparable services. • Individual contracts: group entities will sign separate service agreements under the framework, all governed by the same commercial principles. • Internal controls: ZhengTong Auto will obtain third-party quotations, track transaction amounts through its finance department, and subject the transactions to annual review by both external auditors and independent non-executive directors.
Historical transaction levels Prior to the framework, Xindeco ITG Automobile Group (acquired by ZhengTong Auto in 2026) paid RMB0.26 million, RMB0.93 million and RMB3.31 million for these services in 2023, 2024 and 2025 respectively. Comparable figures for other group entities were embedded in broader property-management fees and not separately disclosed.
Regulatory classification ITG Urban Services is an associate of ITG Holding, ZhengTong Auto’s controlling shareholder, making the framework a continuing connected transaction under Chapter 14A of the Hong Kong Listing Rules. The highest applicable percentage ratio is above 0.1% but below 5%, and the annual cap exceeds HK$3 million; therefore, the arrangement requires public announcement and yearly review but is exempt from circular and independent shareholders’ approval.
Rationale Management cites ITG Urban Services’ expertise in integrated property services and the recurring nature of the work. Consolidating multiple separate service contracts into a single framework is expected to streamline compliance and reduce administrative costs for the group.