Hainan Meilan International Airport Company Limited (MEILAN AIRPORT, 00357) has issued a circular convening an extraordinary general meeting (EGM) on 6 August 2026 to seek independent shareholders’ approval for a new procurement framework agreement with its controlling shareholder, Hainan Airport Infrastructure (600515.SH).

The three-year “Hainan Airport Procurement Framework Agreement”, effective 6 March 2026 to 31 December 2028, governs two-way purchases of products and services between MEILAN AIRPORT and Hainan Airport Infrastructure Group.

Key commercial terms: • Transactions must be on normal commercial terms; prices cannot be less favourable than those offered by or to independent third parties. • Where applicable, government-approved prices prevail; otherwise market prices or cost-plus methodologies apply, with at least two external quotations or competitive tendering. • Separate contracts will specify quantity, service period and payment terms for each deal.

Proposed annual caps (including a 10% buffer): • MEILAN AIRPORT’s purchases from Hainan Airport Infrastructure Group: RMB 252.63 million (2026), RMB 418.70 million (2027), RMB 464.51 million (2028). • Sales of products and services to Hainan Airport Infrastructure Group: RMB 317.22 million (2026), RMB 334.36 million (2027), RMB 341.88 million (2028).

Total potential transaction value over the three years equals approximately RMB 2.13 billion.

Major components • Key inbound items include on-site operation and support services (up to RMB 271.54 million in 2028) and energy products, where electricity purchases may rise to RMB 120.00 million in 2028 after renewal of a supply agreement. • Outbound revenue is dominated by franchise services to duty-free and commercial businesses at Haikou Meilan International Airport, projected to reach RMB 312.37 million in 2028 alongside anticipated passenger growth to 35 million by 2030.

Governance and controls MEILAN AIRPORT has detailed procurement policies requiring multi-quote or tender processes, bid evaluation safeguards and price caps. Independent non-executive directors and external auditors will conduct annual reviews of the transactions.

Board and approval process The Board has endorsed the agreement; Chairman Wang Hong abstained from voting due to his role at Hainan Airport Group. Hainan Airport Infrastructure and its wholly owned subsidiary (holding 62.38% of MEILAN AIRPORT shares) will abstain from voting at the EGM. An Independent Board Committee and Octal Capital Limited, as independent financial adviser, both recommend shareholders to vote in favour of the proposal.

If approved, the framework will formalise ongoing operational synergies between MEILAN AIRPORT and its parent group, underpinning procurement efficiency and revenue stability through 2028.