On December 28, 2024, the Company's indirectly wholly-owned subsidiary, Guigang Shenglong Decoration Materials Co., Ltd. (Guigang Shenglong), entered into a construction contract (as supplemented by a supplemental agreement) (Construction Contract 1) with a contractor for the construction of an impregnated paper and laminated board factory.

The scope of Construction Contract 1's works includes: the contractor is responsible for the construction of the impregnated paper and laminated board factory, including but not limited to construction, decoration, and installation works within the design drawings, external ancillary structures, roads and fencing, water supply and drainage, strong and weak current pipelines, landscaping works, as well as internal and external equipment foundations and storage tanks.

The contract price is RMB 35.20 million (including tax) (equivalent to approximately HKD 38.70 million), and following a supplemental agreement, the contract price was increased by RMB 7.00 million (including tax) (equivalent to approximately HKD 7.70 million), bringing the total contract price to RMB 42.20 million (including tax) (equivalent to approximately HKD 46.40 million).

Construction work under Contract 1 commenced on December 31, 2024, and is expected to be completed within 300 calendar days from the commencement date.

On March 28, 2025, the Company's indirectly wholly-owned subsidiary, Guangdong Shenglong Decoration Materials Co., Ltd. (Guangdong Shenglong), entered into a construction contract with the contractor for the construction of an impregnated paper and laminated board factory (Construction Contract 2).

The scope of Construction Contract 2's works is for the contractor to be responsible for the construction of the impregnated paper and laminated board factory, including but not limited to construction, decoration, and installation works within the design drawings, external ancillary structures, roads and fencing, water supply and drainage, strong and weak current pipelines, landscaping works, as well as internal and external equipment foundations and storage tanks.

The contract price is RMB 76.00 million (including tax) (equivalent to approximately HKD 83.60 million).

Construction work commenced on March 31, 2025, and is expected to be completed within 365 calendar days from the commencement date.

Entering into the construction contracts aligns with the Group's business plan and will further enhance its production capacity and flexibility to facilitate the Group's business expansion in Guigang, China.

The Directors believe that the construction contracts are in line with the Group's development strategy and will further improve the Group's profitability, promoting its long-term sustainable development.