Common Resource Services Agreement. INTRODUCTION On 24 December 2021, YTO, on behalf of YTO Group, as the supplier and/or the supplying agent, and the Company, on behalf of the Group, as the purchaser and/ or the purchasing agent, entered into the Common Resource Services Agreement, pursuant to which YTO Group agreed to provide the Common Resource Services to the Group. COMMON RESOURCE SERVICES AGREEMENT Details of the principal terms of the Common Resource Services Agreement and its proposed Annual Cap are set out below: Date 24 December 2021 Parties
Common Resource Services Agreement. In light of the extensive land area of the Group and the complexity of maintenance and care services to road facilities, so far as the Directors are aware, it is convenient for YTO Group to provide relevant services to the Group, and YTO Group possesses the relevant capability and sufficient capital back-ups to provide the Common Resource Services.
Common Resource Services Agreement. As at the date of this announcement, YTO beneficially owns approximately 48.81% equity interest in the Company and is the immediate controlling shareholder of the Company. Accordingly, YTO is a connected person of the Company and the transactions contemplated under the Common Resource Service Agreement constitute continuing connected transactions of the Company under the Listing Rules. As the applicable percentage ratios for the Common Resource Service Agreement are more than 0.1% but less than 5%, the provision of services under the Common Resource Service Agreement is subject to the reporting and announcement requirements but is exempt from the independent shareholders’ approval requirement pursuant to Chapter 14A of the Listing Rules.
Common Resource Services Agreement. In light of the extensive land area of the Group and the complexity of maintenance and care services to road facilities, so far as the Directors are aware, it is convenient for YTO Group to provide relevant services to the Group, and YTO Group possesses the relevant capability and sufficient capital back-ups to provide the Common Resource Services. The terms of the Common Resource Services Agreement were determined after arm’s length negotiations between the parties thereto. The Directors (including the independent non-executive Directors) consider that the terms of the Common Resource Services Agreement are on normal commercial terms and in the ordinary and usual course of business of the Group, fair and reasonable and in the interests of the Group and the Shareholders as a whole.
