CNGR Advanced Material Co., Ltd. (CNGR) has signed a second supplemental agreement with Hunan Zhongwei Jinneng New Material Company Limited to raise the 2026 annual cap under their Comprehensive Products Supply Framework Agreement from RMB 347.00 million to RMB 612.00 million—a 76.4% increase. The amendment, concluded after trading hours on 24 August 2026, reflects stronger market demand, higher prices and Zhongwei Jinneng’s expanding precious-metal recycling capacity.
For the seven months to 31 July 2026, CNGR had already booked RMB 261.80 million in sales to Zhongwei Jinneng, equal to 75.4% of the previous full-year cap, prompting the upward revision. The enhanced projection accommodates an additional 1.88 tons of hematite precious metal expected to be supplied in the second half of 2026, contributing roughly RMB 265.00 million to the year’s transaction value and taking the full-year estimate to about RMB 612.00 million.
Transaction prices will continue to be set with reference to historical dealings, expected procurement levels and prevailing market rates for relevant materials, while factoring in raw-material, labour and market-trend costs. All other contractual terms, first established in November 2025 and previously amended in June 2026, remain unchanged; the framework runs through 31 December 2027.
Regulatory context • Zhongwei Jinneng is 70% owned by executive director Mr Deng Jing and 30% by Changsha Zhongwei High Tech Venture Capital, itself 80% held by Mr Deng Jing and 20% by executive director and controlling shareholder Mr Deng Weiming. Consequently, Zhongwei Jinneng is a connected person under Hong Kong’s Listing Rules. • Because the revised cap exceeds 0.1% but remains below 5% of the applicable percentage ratios, the transaction is classified as a non-exempt continuing connected transaction requiring announcement and annual review but not independent shareholders’ approval.
Governance and oversight CNGR’s audit committee, board and internal departments will monitor execution, review pricing and ensure compliance with Chapter 14A requirements. Independent non-executive directors and external auditors will provide annual confirmations on transaction fairness and adherence to caps. Directors with material interests—Mr Deng Weiming, Mr Tao Wu and Mr Deng Jing—abstained from the board vote approving the revised cap.
Business profiles • CNGR is a PRC-incorporated producer of new-energy battery materials, focusing on nickel-, cobalt-, phosphorus- and sodium-based cathode active material precursors, as well as related metal products and by-products. • Zhongwei Jinneng specialises in precious-metal and non-ferrous-metal smelting, electronic specialty materials and new-material technologies. Its recent capacity expansion—adding four tons of annual output in 2026—underpins the increased procurement forecast from CNGR.
The updated arrangement enables CNGR to monetise both core and by-products generated from nickel laterite processing, broadening revenue while securing a stable off-take partner and reducing marketing costs associated with spot sales.