CITIC TELECOM (01883) announced that Companhia de Telecomunicações de Macau's franchise contract with the Macau government, originally set to expire on September 30, 2025, has been extended through a supplementary agreement signed on September 18, 2025.

Under the new agreement, the franchise contract will be extended for an additional two years, running from October 1, 2025, through September 30, 2027. The Macau government retains the right to terminate the contract with 60 days' prior notice after September 30, 2026.

Key provisions of the supplementary contract include:

The designated assets and investments under the franchise contract will become property of the Macau Special Administrative Region effective October 1, 2025, though the telecommunications company will retain usage rights. Beginning October 1, 2025, franchise assets will be made available to public telecommunications network operators in the Macau SAR on a "fair, transparent, user-pays" principle.

For non-franchise business use, the telecommunications company will pay fees for asset usage, with specific charges to be negotiated with the Macau government. Starting January 1, 2026, the company will assist the government in managing shared asset applications, including establishing management systems, fee collection, and usage allocation.

During the supplementary contract period, both parties will continue negotiating details that remain undefined. The net book value of franchise assets as of June 30, 2025, was approximately HK$215 million.

The company views this supplementary contract as a continuation of principles established in the previous agreement dated September 30, 2024, which will benefit the telecommunications company's future development. The company reaffirmed its commitment to supporting Macau's social development and service functions.

CITIC TELECOM has applied to the Hong Kong Stock Exchange for the resumption of share trading effective 1:00 PM on Thursday, September 18, 2025.