Energy Transition & Power Demand▲2
Hongde Shares Signs Framework Procurement Agreement for Aluminum Alloy Components for Power Equipment
Hongde Shares has signed a Global Procurement Framework Agreement with a well-known enterprise in the global electrification sector. The counterparty will purchase aluminum alloy component products for power equipment from the company. The company has reserved a cumulative manufacturing capacity of 9,000 tonnes, with a tolerance of plus 10 percent, for power equipment aluminum alloy components for the counterparty from fiscal year 2026 to fiscal year 2028. The agreement takes effect from July 2026 and has a performance period of 36 months. The agreement stipulates a compensation mechanism: if the counterparty fails to purchase the committed quantity under the capacity reservation plan, after deducting the agreed minus 10 percent tolerance, the company may claim compensation ranging from 1 percent to 10 percent of the unpurchased minimum committed quantity for the relevant fiscal year. Over the past three years, the cumulative value of similar transactions between the company and the counterparty amounted to 71.1275 million yuan, accounting for 21.79 percent, 22.65 percent, and 19.27 percent of the relevant business in each respective year.