Reasons for entering into the Xxxx Labour Purchase and Production Services Framework Agreement Sample Clauses

Reasons for entering into the Xxxx Labour Purchase and Production Services Framework Agreement. The products and materials and production services to be provided under the Xxxx Labour Purchase and Production Services Framework Agreement will be important to the Enlarged Group’s operations. Given the long-term relationship of Xxxx Labour, its subsidiary and the Enlarged Group and the close geographical proximity of their respective operations, the Directors consider that the entering into of the Xxxx Labour Purchase and Production Services Framework Agreement will allow the Enlarged Group to secure a cost effective, timely and stable source of supply of those products and materials and production services. Further information on the Exempt Continuing Connected Transactions Based on the annual caps proposed to be adopted for each of the Land Lease Framework Agreement and the Xxxx Labour Purchase and Production Services Framework Agreement, one or more of the Relevant Ratios for the transactions to be carried out pursuant to such agreement is expected to exceed 0.1% but be less than 5%. Hence, such transactions are subject to the reporting, announcement and annual review requirements only and are exempted from the independent shareholders’ approval requirement as prescribed under Chapter 14A of the Listing Rules. The Directors consider that the Exempt Continuing Connected Transactions will be entered into in the ordinary and usual course of business of the Enlarged Group, on normal commercial terms which will be no less favaurable to the Enlarged Group than those available to or from Independent Third Parties, fair and reasonable and in the interests of the Company and its shareholders as a whole. Information about the Group, the Parent Company, Hubei Gold, Xxxx Transportation, Tonghua Hotel and Xxxx Labour The Group is principally engaged in securities trading and investments, property investment, management consultancy, natural resources investment and development and trading in non-ferrous metals. The Parent Company, a substantial shareholder and therefore a connected person of the Company, is a state-owned conglomerate in China whose principal business is copper mining and processing. It owns, through the Target Group, one of the five largest raw material production bases of copper in the PRC. It has a fully integrated operation which enables it to undertake the different stages of copper production from mining, processing, smelting and plating, research and development, design to sales and trading. It also produces precious metals such as platinum,...