---
title: "Wuhan Youji Lifts Connected-Party Cap Under New Xinkang Equipment Deal"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/275492274.md"
description: "Wuhan Youji Holdings Ltd. has replaced its 2024 framework agreement with Xinkang Chemical with a new agreement extending to 2028, allowing for increased annual transaction caps of RMB110 million. This change reflects expectations of higher demand for equipment and services, while ensuring fair pricing for minority investors. The agreement requires independent shareholder approval and aims to enhance governance around connected transactions. The current analyst rating for Wuhan Youji Holdings is a Hold with a price target of HK$5.50."
datetime: "2026-02-10T15:09:12.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/275492274.md)
  - [en](https://longbridge.com/en/news/275492274.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/275492274.md)
---

# Wuhan Youji Lifts Connected-Party Cap Under New Xinkang Equipment Deal

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Wuhan Youji Holdings Ltd. ( (HK:2881) ) has provided an update.

Wuhan Youji Holdings has agreed with related party Xinkang Chemical to terminate an earlier 2024 framework agreement and replace it with a new 2026 framework agreement covering the supply of equipment, pipes and fittings, as well as installation and maintenance services, for the period from 1 January 2026 to 31 December 2028. The new agreement, which is subject to independent shareholders’ approval, sets annual transaction caps of RMB110 million for each of the years 2026, 2027 and 2028, significantly raising the 2026 cap from RMB63.4 million and formalizing pricing safeguards based on arm’s length benchmarking to ensure terms remain fair and in the interests of minority investors.

The revised framework signals Wuhan Youji’s expectation of higher demand for equipment and related services to support its operations over the next three years and underscores the importance of Xinkang Chemical as a strategic connected supplier. By expanding the cap and embedding a market-based pricing policy, the company aims to secure sufficient capacity for its production needs while addressing governance requirements around continuing connected transactions and providing clearer visibility on future spending for stakeholders.

The most recent analyst rating on (HK:2881) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Wuhan Youji Holdings Ltd. stock, see the HK:2881 Stock Forecast page.

**More about Wuhan Youji Holdings Ltd.**

Wuhan Youji Holdings Ltd., listed in Hong Kong, operates in the chemical sector and relies on specialized production equipment such as stainless steel and carbon steel vessels, condensers and heat exchangers. The group outsources significant portions of its equipment production, installation and maintenance needs to related parties, positioning these arrangements as a key operational support for its manufacturing activities.

**Average Trading Volume:** 16,337

**Technical Sentiment Signal:** Sell

**Current Market Cap:** HK$479.6M

Learn more about 2881 stock on TipRanks’ Stock Analysis page.

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