Powerlong Real Estate (Stock Code: 1238) announced a new “2026 Digitalization Service Agreement” with Shanghai Yueshang, effective from 1 January 2026 to 31 December 2028. This agreement serves as a renewal of the current arrangement, which is set to expire on 31 December 2025.

Under the new framework, Shanghai Yueshang will continue to provide services related to internet digital deployment, information systems, and associated hardware for various projects. The annual transaction caps are set at RMB45.8 million, RMB45.9 million, and RMB46.0 million for 2026, 2027, and 2028 respectively. These figures reflect expected project volumes and the Group’s ongoing push for integrating digital solutions into operations.

Shanghai Yueshang is deemed a connected person at the listed issuer level, as it is partly owned by a director and substantial shareholder of Powerlong Real Estate, and partly by a non-wholly-owned subsidiary of the Group. The arrangement therefore constitutes continuing connected transactions under Chapter 14A of the Listing Rules. Given the highest applicable percentage ratio is above 0.1% but below 5%, the transactions under the agreement are subject to reporting and announcement requirements but exempt from circular and independent shareholder approval.

The company cited Shanghai Yueshang’s track record and familiarity with its needs as key reasons for maintaining a business relationship. Previous collaborative arrangements have not exceeded their annual caps, and the latest agreement is expected to sustain the Group’s digital development goals through 2028.