Unity Enterprise Holdings Limited (2195) announced that its indirectly wholly-owned subsidiary, Hong Dau Construction Company Limited (Hong Dau), entered into a framework service agreement on 23 February 2026 with Arcana Water Seepage Investigation Co. Limited (Arcana). Under the agreement, Arcana may subcontract certain construction-related services to Hong Dau for approximately three years from 1 March 2026 to 31 December 2028.

Arcana is fully owned by a connected person, leading the proposed arrangement to be classified as a continuing connected transaction. The board of directors disclosed that the applicable percentage ratios are under 25%, and each annual cap remains below 10.00 million Hong Kong dollars, avoiding the requirement for independent shareholders’ approval. The deal will still undergo annual review, reporting, and announcement procedures per the Listing Rules.

According to the framework service agreement, the expected annual caps of the total contract sums to be received by the Group from Arcana are 9.50 million HK dollars from 1 March 2026 to 31 December 2026, and 9.90 million HK dollars for each of the financial years ending 31 December 2027 and 31 December 2028. The transaction terms are determined through a cost-plus assessment and project-specific factors, with reference to prevailing market rates for comparable services.

The arrangement aims to leverage the Group’s technical capabilities in repair, maintenance, alteration, and addition works, while ensuring normal commercial terms for both parties. The board believes the agreement can help secure project opportunities, stabilize revenue, and enhance business sustainability amid current market conditions.