S.A.S. Dragon (HKG:1184) proposed new annual caps of HK$4.3 billion for sales to the Hon Hai Group and HK$3.3 billion for purchases from the group in 2026, according to a Thursday Hong Kong bourse filing.
The caps will rise to HK$5.9 billion and HK$3.8 billion, respectively, in 2027, and HK$8.1 billion and HK$4.3 billion in 2028. The higher caps reflect the Group's business expansion and increasing market demand.
Sales to Hon Hai reached HK$1.78 billion in the first half of 2026, compared with HK$2.35 billion for all of 2025.
The company also entered into a new conditional master agreement with Hon Hai to extend the arrangements for sales and purchases of electronic components and distribution of Hon Hai Group brand products through Dec. 31, 2028.
The new agreement and caps are subject to approval by independent shareholders.