Sinofert Holdings Limited (Stock Code: 297) has announced that its indirect wholly-owned subsidiary, Sinochem Yunlong Co., Ltd. (Sinochem Yunlong), entered into an EPC General Contracting Agreement with 中藍連海設計研究院有限公司 (China Bluestar Lehigh Engineering Corporation, or CBLE) and 雲南強世建設工程有限公司 (Yunnan Qiangshi) on November 13, 2025. The agreement covers the renewal and renovation of electrical and instrumentation equipment at Sinochem Yunlong’s facility and is capped at RMB31,000,000 in total consideration.

Sinochem Yunlong’s chemical defluorination, arsenic removal, fluoride salt removal, and monocalcium phosphate sections have been operating for an extended period, leading to declining performance and reduced reliability. Under the agreement, CBLE and Yunnan Qiangshi will handle design, procurement, construction, installation, and commissioning. The project involves, among other tasks, replacing key electrical components, transformers, and cables, as well as renewing field instruments and relocating Distributed Control System components. The work is subject to a stepped payment schedule, with final acceptance planned by early December 2025.

CBLE, as an indirect subsidiary of Sinochem Holdings Corporation Ltd. (Sinochem Holdings), is a connected person of the Company under the Hong Kong Listing Rules. Consequently, the transaction constitutes a connected transaction. Since the highest applicable percentage ratio exceeds 0.1% but remains below 5%, it is subject to reporting and announcement requirements but exempt from independent shareholders’ approval.

Sinochem Holdings is the ultimate controlling shareholder of Sinofert Holdings Limited, indirectly holding approximately 52.65% of its issued shares. CBLE specializes in scientific research, design, and project general contracting, while Yunnan Qiangshi focuses on construction engineering and related services. Sinochem Yunlong engages in mining, beneficiation, and production and sale of dicalcium phosphate. The board of directors of Sinofert Holdings Limited considers the agreement to be fair, reasonable, and in the interests of the Company and its shareholders.