KB Laminates (Kingboard Laminates Holdings Limited) plans to raise the financial ceilings on its continuing connected transactions with controlling shareholder Kingboard Holdings (KBH) after stronger-than-expected volume growth and higher raw-material prices pushed utilisation near existing limits.

The group signed two new framework agreements with KBH on 16 September 2026, both running from 1 January 2026 to 31 December 2028:

• New Materials Purchase Framework Agreement – purchase of chemicals such as methanol, formalin and phenol from the KBH Group. • New Supply Framework Agreement – supply of laminates and related upstream materials to the KBH Group.

Proposed caps (HKD):

• Chemicals purchased from KBH – 2026 (revised): 1.17 billion – 2027: 1.41 billion – 2028: 1.69 billion

• Laminates supplied to KBH – 2026 (revised): 6.94 billion – 2027: 8.33 billion – 2028: 10.00 billion

The 2026 purchase cap is 38 % above the current HKD 0.85 billion limit, while the 2026 supply cap is 46 % higher than the existing HKD 4.77 billion ceiling. Utilisation during the eight months to 31 August 2026 had already reached 73.84 % of the purchase cap and 77.70 % of the supply cap, driven by a 32.5 % rise in crude-oil-linked chemical prices and a surge in copper prices of roughly 11.5 %.

Pricing for both agreements will reference prevailing market levels, supported by external data sources, third-party quotations and comparable transactions, and must be no less favourable to KB Laminates than terms offered by or to independent parties. The KBH Group grants a 30-day credit period on chemical sales to the company, while KB Laminates grants KBH a 90-day credit period on laminate deliveries.

Given KBH’s 62.41 % shareholding, the revised and new annual caps constitute non-exempt continuing connected transactions. All percentage ratios exceed 5 %, triggering reporting, circular and independent shareholders’ approval requirements under Chapter 14A of the Hong Kong Listing Rules. KBH and its associates will abstain from voting.

An extraordinary general meeting is scheduled for 30 October 2026. Independent non-executive directors endorse the proposals, and Karl Thomson Financial Advisory Limited has been appointed as independent financial adviser.