China Oriental Group Company Limited (China Oriental; HKEX: 00581) has entered into two framework agreements with ArcelorMittal-backed NEMM Upstream JV to provide operational support and lease properties for the period from 25 September 2026 to 31 December 2028.

Business scope and pricing 1. Operational Support Services Framework Agreement – China Oriental and its subsidiaries will supply (i) Business Support Services such as office supplies, logistics, facilities maintenance and security, and (ii) Personnel Secondment Services covering salaries and benefits of seconded staff. Pricing will be based on arm’s-length negotiations, taking into account expected costs, market quotations for comparable services and transactions with independent third parties.

2. Property Leasing Framework Agreement – The Group will lease certain properties and office space in mainland China to NEMM Upstream JV. Rents will reference prevailing market rates for comparable premises and other third-party leases.

Annual caps • Business Support Services: RMB14.00 million (FY26), RMB19.00 million (FY27), RMB19.00 million (FY28). • Personnel Secondment Services: RMB26.00 million, RMB32.00 million, RMB38.00 million. • Aggregate operational support caps: RMB40.00 million, RMB51.00 million, RMB57.00 million. • Property Leasing: RMB1.00 million, RMB3.00 million, RMB5.00 million.

Historical baseline From 1 January to 24 September 2026, NEMM Upstream JV paid approximately RMB1.03 million for business support services and RMB0.23 million for leasing—both below the 0.1% de-minimis threshold under HKEX Listing Rule 14A.76(1).

Regulatory classification Because ArcelorMittal owns 50% of NEMM Upstream JV and is a substantial shareholder of China Oriental, the JV is deemed a connected person. The projected annual caps fall between 0.1% and 5% of relevant percentage ratios; thus, the transactions are classified as continuing connected transactions subject only to reporting, annual review and announcement obligations, without requiring independent shareholders’ approval.

Strategic rationale NEMM Upstream JV is constructing a hot strip mill for electrical-steel grade hot-rolled coils, with first production targeted for Q4 2026. The agreements allow China Oriental to monetise idle resources, secure incremental service and rental income, and facilitate the JV’s readiness for commercial operations. China Oriental holds a 50% stake in the JV.

Governance and internal controls The Board approved the agreements, with directors Sanjay Sharma and Ondra Otradovec—both linked to ArcelorMittal—abstaining. Monthly monitoring mechanisms will track fee accruals to ensure compliance with annual caps and HKEX requirements.