Actions Taken Under the Program The actions taken by the Recipient under the Program include the following:
IMPLICATIONS UNDER THE LISTING RULES Yaohua Industrial Village is indirectly wholly owned by Xx. Xxx Xxx Xxxx, the chairman of the Board, and his spouse Xx. Xxxx Xxxx Xxxx. Therefore, Yaohua Industrial Village is a connected person of the Company and its transaction with the Company constitutes a connected transaction of the Company under Chapter 14A of the Listing Rules. The right-of-use assets acquired under the New Lease Contract will be recognized by the Group in its consolidated statement of financial position in accordance with the IFRS 16. Accordingly, the entering into of the New Lease Contract and the transaction contemplated thereunder will be considered as an acquisition of right-of-use assets by the Group, with a total value expected to be approximately RMB136.87 million. As one or more of the applicable percentage ratios of the estimated value of the right-of-use assets to be recognized by the Company under the New Lease Contract (when aggregated with the transactions under the Existing Lease Contract) are more than 0.1% but all of the applicable percentage ratios are less than 5%, the Lease of Properties is subject to the reporting and announcement requirements but exempt from the circular (including independent financial advice) and independent shareholders’ approval requirements under Chapter 14A of the Listing Rules. Xx. Xxx Xxx Xxxx, Xx. Xxx Xxx (a son of Xx. Xxx Xxx Xxxx) and Xx. Xx Xxx (the son-in-law of Xx. Xxx Xxx Xxxx) have abstained from voting on the Board resolution approving the New Lease Contract and the transaction contemplated thereunder in accordance with the requirements of the Articles of Association of the Company. Save as disclosed above, no other Director has any material interest in the transaction contemplated under the New Lease Contract. Therefore, none of the other Directors abstained from voting on the relevant resolution of the Board. The Directors (including the independent non-executive Directors) are of the view that the connected transaction under the New Lease Contract is entered into on normal commercial terms or better in the ordinary course of business of the Company, the contract terms are fair and reasonable and in the interests of the Company and its shareholders as a whole.
Responsibility for Following Standards Each Party recognizes a responsibility to follow the standards that may be agreed to between the Parties and to employ characteristics and methods of operation that will not interfere with or impair the service, network or facilities of the other Party or any third parties connected with or involved directly in the network or facilities of the other.