Watts International Maritime (2258) has announced that on 4 December 2025, it entered into the 2026–2028 Master Construction Services Agreement with Shanghai Watts Gallop Holding Group Co., Ltd. (Watts Gallop). The agreement, which is subject to approval by independent shareholders at an extraordinary general meeting on 23 December 2025, will allow Watts International Maritime to continue providing engineering construction services to Watts Gallop’s subsidiaries. The new arrangement will take effect from 1 January 2026 until 31 December 2028, replacing the existing agreement scheduled to expire at the end of 2025.

Under the proposed agreement, annual transaction caps for engineering construction services have been set at RMB330 million, RMB156 million, and RMB150 million for the years ending 31 December 2026, 2027, and 2028, respectively. These figures were determined with reference to past transaction amounts, projected demand for engineering construction services based on the group’s ongoing and potential projects, expected gross profit margins, and the company’s historical performance in similar service arrangements.

Management highlighted that collaboration with Watts Gallop has provided stable revenue streams, long-term synergies, and reduced credit risk due to the longstanding relationship between both parties. Directors with interests in Watts Gallop did not vote on relevant board resolutions, and shareholders with material interests in the agreement are required to abstain from voting at the upcoming extraordinary general meeting. According to the company, the renewal aligns with its ordinary and usual course of business and is expected to be beneficial to both the company and its shareholders.