Basis of Proposed Annual Caps Sample Clauses
The "Basis of Proposed Annual Caps" clause defines the method and rationale used to determine the maximum annual amounts for certain transactions or payments under an agreement. Typically, this clause outlines the factors considered in setting these caps, such as historical transaction volumes, projected business needs, or anticipated market conditions. By clearly establishing how annual limits are calculated, the clause ensures transparency and predictability for both parties, helping to manage financial risk and prevent disputes over excessive or unexpected charges.
Basis of Proposed Annual Caps. In arriving at the above proposed annual caps, the Company has considered the following principal factors: Under the Machinery Equipment and Accessories Sales Framework Agreement, the products and services provided by us to CRCC and/or its associates mainly consist of two types, namely (i) the various kinds of large railway track maintenance machines and other related or ancillary products and services; and (ii) other machines and railway equipment, facilities and materials and other related or ancillary products and services.
(i) Large railway track maintenance machines and other related or ancillary products and services
(a) due to the sustainable growth trend in the aggregate amounts of transactions for the three years ended 31 December 2021, the Company expects more potential for growth in the future. Pursuant to the 14th Five-Year development strategic plan of CRCC, it is expected that the revenue of CRCC will keep increasing with a compound annual growth rate of 6.8% during the five years from 2021 to 2025. Besides, considering that the construction of engineering projects lasts for several years after signing the contract, the demand of the large railway track maintenance machines of CRCC is sustainable. In particular, as of 31 December 2021, 23 categories of machines and 121 types of machinery equipment of the Company, e.g., sewage suction and sand removal machinery, cleaning machinery and stone ballast treatment machinery, were recognized into the requisite list of supplies, for the first time. Pursuant to the Company’s deep participation in CRCC’s railway engineering projects and CRCC’s purchase intention which the Company knows, the Company estimates that the sales of large railway track maintenance machines and parts and components to CRCC for 2023 will amount to RMB600 million, representing an increase of approximately 25% comparing to 2022;
(b) according to the regulations enacted by National Railway Administration of the PRC and relevant competent authorities, the large railway track maintenance machinery would be due for overhaul after being used for 10 to 13 years, or achieving certain level of workload; as such, the CRCC Group’s demand for our overhaul services is expected to increase in the three years ending 31 December 2025 as more railway track maintenance machines supplied to the CRCC Group are expected to be due for overhaul; and
(c) taking into account macro-economic conditions, such as the “One Belt, One Road” initiative adopted b...
Basis of Proposed Annual Caps. In arriving at the above Aggregated Annual Caps, the Company considered the following: The proposed annual caps for the purchase of the Group’s Products are determined based on: (i) the ongoing negotiations between ASH Group and Teamsun Group; (ii) the market prices of the products offered by Teamsun Group to other independent third parties; and (iii) the anticipated increase in demand for Teamsun Group’s Products, driven in part by the launch of the Greater Bay Area headquarter in Guangzhou and the growing number of software development projects for the Group’s customers in the PRC. The proposed annual caps for sales of the Group’s Products to Teamsun Group are determined based on the estimated sales of the Group’s Products to Teamsun Group, considering: (i) Teamsun Group’s operational needs for the Group’s Products for its customers in Hong Kong, Southeast Asia, Europe, and the United States; (ii) projected business opportunities as indicated by Teamsun Group, considering their pipeline projects; (iii) the anticipated number of Teamsun Group customers requiring the Group’s Products; and (iv) the expected volume and size of transactions for Teamsun Group’s multi-task projects; and (v) the need for the Group to source products for Teamsun Group’s overseas customers, driven by Teamsun Group’s anticipated expansion into international markets. The proposed annual caps for procurement of Teamsun Services by the Group are determined based on, among other things, (i) the historical transaction amount of Teamsum Services; (ii) the ongoing negotiations between the Group and Teamsun Group; (iii) the estimated amount of IT or IT related functions and services available to be sourced from Teamsun Group; (iv) the market prices of the related services offered by Teamsun Group to other independent third parties; (v) the anticipated increase in demand for Teamsun Service by the Group for its customers’ projects in the PRC, particularly for on-site support and software maintenance services, based on the Company’s assessment of possible business opportunities in IT service of the Group according to tenders submitted or anticipated to be submitted by the Group for such services; and (vi) the Group plans to capitalize on its Greater Bay Area headquarters in Guangzhou, established in fall 2023, to enhance its customer outreach within the Greater Bay Area and expand its presence beyond. With this strategic initiative, the Group anticipates a significant increase in the demand ...
Basis of Proposed Annual Caps. The proposed annual caps under the 2021-2023 Site Resource Service Framework Agreement set out above are determined based on the following: • the historical transaction amounts set out above and their increasing trend; • the explosive growth in the overall demand for informatization and information transmission across the industry brought by the rapid development of technologies such as Internet of Things, big data and AI; • against the background of the above industry development, due to the continuous growth of the business scale of CMCC and its associates, leveraging on the dedicated Internet access resources and integrated solution capabilities, CMCC’s and its associates’ business of providing comprehensive information services for the informatization of various industries having been developing rapidly. As a result, their demands for the site resource service provided by the Group are expected to increase rapidly as well; and • preliminary cooperation intentions under negotiations and already agreed currently in various regions in the PRC between CMCC and its associates and the Group on future provision of site resource service. Entering into the 2021-2023 Site Resource Service Framework Agreement can streamline the provision of site resource service by the Group to CMCC and its associates and enable the Group to manage such transactions efficiently. Entering into the 2021-2023 Site Resource Service Framework Agreement with the proposed annual caps would encourage CMCC and its associates to obtain such service from the Group and would therefore be beneficial to the Company. Entering into the 2021-2023 Site Resource Service Framework Agreement is (i) in the ordinary and usual course of business of the Company; (ii) on normal commercial terms; and (iii) fair and reasonable, and in the interests of the Company and its shareholders as a whole. The proposed annual caps under the 2021-2023 Site Resource Service Framework Agreement for the three years ending 31 December 2021, 2022 and 2023 are also fair and reasonable, and are in the interests of the Company and its shareholders as a whole. As disclosed in the Prospectus, the Company has in its ordinary and usual course of business procured materials from CTC and its associates on normal commercial terms such as softwares and accessories and parts required by business, and each of the applicable percentage ratios for such transactions calculated in accordance with the Listing Rules was below 0.1% on an annua...
Basis of Proposed Annual Caps. The proposed annual caps under the Materials Procurement Framework Agreement set out above are determined based on the following: • the historical figures and the increase of transaction amount of relevant transactions; • the historical revenue, growth rate and the expected future development of the TSSAI business; • the expected increase in the price of materials to be procured; and • preliminary cooperation intentions under negotiations currently and already agreed in various regions in the PRC between CTC and its associates and the Group on future procurement of materials.
Basis of Proposed Annual Caps. The annual caps are based on the estimated amount of cash generated from the Group’s business activities, the relevant benchmark rates set by PBOC and the anticipated financial services requirement of the Group from the effective date of the Financial Services Framework Agreement to the end of 2016.