Nanfang Communication Holdings Limited (1617) announced the signing of a construction contract on 13 February 2026 for a total fee of RMB38.25 million. The contract was awarded to Jiangsu Xinxia Construction Limited, an independent third party, to develop and renovate the Nanfang Science and Technology Ecological Industrial Park.

The project is scheduled to run for 240 days, commencing on 1 May 2026 and concluding on 28 December 2026. Under the agreement, 10% of the fee will be paid upon contract signature and provision of a performance guarantee, followed by progressive payments based on key construction milestones. The final payment—bringing the total to 100%—is due within two years of completion acceptance.

In addition, approximately RMB2.10 million will be paid as an infrastructure facilities fee to the local housing and urban-rural development bureau before construction begins. The fee covers the construction and maintenance of urban infrastructure tied to the industrial park’s redevelopment.

According to the company’s announcement, this initiative intends to centralize production capacity and lower operating costs by consolidating operations from older factory sites. The project may also generate new income sources through the potential leasing or sale of portions of the completed facilities.

The transaction qualifies as a discloseable transaction under the relevant listing rules, given applicable percentage ratios above 5% but below 25%. The construction contract and the infrastructure fee have been aggregated and remain within the 5%–25% threshold. The project aligns with the company’s broader strategy to enhance manufacturing efficiency and pursue long-term development goals.