Horizon Construction Development Limited (Stock Code: 9930) entered into a new Material Procurement Framework Agreement with Shaoxing Shangyu Boteng Metal Products Co., Ltd. (Shangyu Boteng) on 3 February 2026. The agreement is set to be effective until 31 December 2028 and follows the expiration of the existing arrangement on 31 December 2025.

Horizon Construction Development Limited, a leading equipment operation service provider in China, agreed to purchase certain materials, primarily connection accessories of ringlock scaffolds, from Shangyu Boteng and its associates. The annual cap for procurement fees under the agreement is RMB120 million for each financial year ending 31 December 2028. The pricing is determined through prevailing price standards, comparable local market rates, or negotiated terms. Historical procurement fees from Shangyu Boteng and its associates were RMB77,741,000 in 2023, RMB102,234,000 in 2024, and RMB10,111,000 in 2025, reflecting a significant decrease due to a strategic contraction in domestic material-related business in 2025.

As Shangyu Boteng is indirectly connected to a non-executive Director of Horizon Construction Development Limited, the agreement falls under continuing connected transactions governed by Chapter 14A of the Listing Rules. The Board determined that the highest applicable percentage ratio exceeds 0.1% but is less than 5%, thereby requiring reporting, announcement, and annual review while remaining exempt from independent shareholders’ approval. Internal control measures, including annual reviews by the audit committee and external auditors, will continue to be applied to ensure that transaction terms remain comparable to those offered by independent third parties.

Shangyu Boteng is engaged in the processing and manufacturing of metal components needed for ringlock scaffolds, which are critical to the safety of engineering and construction projects. Its proximity to the group’s operation base in Jinshan District of Shanghai helps lower transportation costs. Horizon Construction Development Limited’s Board considered the longer warranty period and favorable payment terms offered by Shangyu Boteng as key factors supporting the transaction, noting that it is conducted under normal commercial terms and in the interest of the company and its shareholders as a whole.