Shenglong Splendecor International Limited (SHENGLONG INTL) has issued an update on two construction contracts that were belatedly classified as major transactions under Chapter 19 of the GEM Listing Rules.

The Board disclosed that project managers at subsidiaries Guigang Shenglong and Guangdong Shenglong mistakenly believed the contracts fell within ordinary business operations and therefore did not trigger disclosure obligations. The oversight was identified only when the Group prepared audited financial statements, leading to a breach of announcement and circular requirements.

Management emphasized the breach was inadvertent and a one-off incident. To prevent recurrence, the company has implemented the following key remedial measures:

1. Semi-annual external training for directors, senior management, project managers and compliance staff, with the first session held on 26 February 2026 and the next scheduled for 24 June 2026.

2. An enhanced notifiable-transaction workflow that requires the manufacturing operation team to submit proposed transactions to the company secretary for GEM Rules assessment before execution.

3. Monthly compliance reports from the Compliance Department to the Head of Compliance and the CEO, who will table findings to the Board.

4. Written guidelines on notifiable transactions distributed to all directors and senior management across the Group.

5. A standing policy to consult independent professional advisers or the Stock Exchange before entering any potential notifiable transaction.

The Board believes these measures, now in force, strengthen internal controls and are adequate for ongoing compliance with GEM Listing Rules.