01382.HK: Agreement With Major Shareholder Toray On Sales Of Fabrics

Mutual textiles (01382) announcement, in February 27, 2019, the company and Toray set up a general agreement for the group to sell fabrics to Toray group from February 27, 2019 to March 31, 2021.

According to the head agreement, the sale of cloth is carried out in accordance with the normal commercial terms, and the terms and conditions of the agreement set out in the purchase order shall be complied with by the contracting parties concerned.

Toray is the main shareholder of the company, holding about 28.03% of the issued share capital, so it is the associated person of the company.

For the 3 financial year ended March 31, 2021, the annual ceiling of pactions under the head agreement is HK $100 million per year.

The group member company has been the customer of Toray group's yarn for over 17 years.

The company believes that the conclusion of the head office agreement will enable the group to expand its business portfolio through its business relationship with Toray group.

In addition to continuing to benefit from the supply of stable yarn for many years, a stable source of revenue is also obtained in the distribution of cloth.