Honbridge Holdings Limited announcement of the company dated 28 September 2020 and the circular of the company dated 29 October 2020 in relation to, among others, the entering into of the Sales Framework Agreement with Zhejiang Geely, pursuant to which the Group will supply high performance ternary lithium-ion battery packs and related products to Zhejiang Geely Group. Reference is made to the announcement of the company dated 28 September 2020 and the circular of the company dated 29 October 2020, the Company entered into the Sales Framework Agreement with Zhejiang Geely, pursuant to which the Group will supply high performance ternary lithium-ion battery pack to Zhejiang Geely Group. The term of the Sales Framework Agreement commences from 16 November 2020 and will end on 22 October 2023, subject to renewal upon the mutual consent of both parties. The transactions contemplated under the Supplemental Sales Framework Agreement between the Group and Zhejiang Geely were entered into the ordinary and usual course of business of the Group. The Directors are of the view that securing such world renowned customers can effectively improve the Group's financial performance and deliver a stable income to the Group given that there will be different vehicle brands under Zhejiang Geely using the powered batteries. Based on internal estimates and the anticipated continuing growth of business in the second half of 2021, the Directors are of the view that the Existing 2021 Annual Cap will not be sufficient for the business needs of the Group. The purchases orders of high-performance lithium-ion powered battery packs from Volvo Car has surpassed the original internal estimates for the year ending 31 December 2021. Therefore, the Directors propose to revise the annual cap for the continuing connected transactions under the Supplemental Sales Framework Agreement for the year ending 31 December 2021 from RMB250 million to RMB 460 million. The management of the Group believed that the sudden surge of demand for Volvo Car is just a temporary effect in 2021 as a result of the market rebounds after the novel coronavirus (``COVID-19'') pandemic-related shutdowns, and will not affect the estimated sales volume with Volvo Car for the year ending 31 December 2022 and for the period from 1 January 2023 to 22 October 2023 respectively. The Directors therefore confirm that the annual caps for the year ending 31 December 2022, and the period from 1 January 2023 to 22 October 2023, respectively remain unchanged. The price of goods under the Supplemental Sales Framework Agreement will be negotiated on an arm's length basis and determined in the ordinary course of business on normal commercial terms or on terms no less favourable to the Company than those provided to independent third parties and will be specified in individual purchase orders. The price of goods above would be set after making reference to the prevailing market price of same or substantially similar products from other independent third party lithium-ion powered battery manufacturers on normal commercial terms and in the ordinary course of business. Subject to any future change in the internal control system, the Group would conduct market research on a quarterly basis and gather relevant information to assess the prevailing market price of similar products. Details of relevant procedures are set out in the section headed ``INTERNAL CONTROL MEASURES'' of this announcement. Products price will be reviewed quarterly to ensure that the price set is consistent with the prevailing market price of similar products and is no less favourable to the price of similar products offered to the independent third parties. After obtaining the quotations from the above third party suppliers, the sales team of the Group performs analysis against factors including but not limited to the general market supply and demand of the products, raw material costs, available production capacity and delivery time, etc. to determine the price ranges and ensure that the price ranges are not lower than the quotations offered by third party suppliers.