Anhui Conch Cement Company Limited (Conch Cement) signed a supplemental contract on 7 May 2026 with Conch Material Technology to revise both the unit price and the annual cap under the existing cement admixtures (grinding aids) procurement agreement.

The validity of the amended terms runs from 7 May 2026 to 31 December 2026. Key changes are:

1. Variable Pricing: • The original fixed unit price is replaced by a mechanism linked to key raw-material costs. • Raw-material prices are benchmarked to data published on the SCI99 platform. • If monthly average raw-material costs move by ±5 per cent or more versus the 31 December 2025 baseline, the unit price is adjusted accordingly; otherwise, the previous month’s price is retained.

2. Higher Annual Cap: • The maximum transaction amount for 2026 rises from RMB700.00 million to RMB780.00 million, subject to approval by Conch Material Technology’s shareholders. • From 1 January to 30 April 2026, Conch Cement has already purchased RMB167.00 million of cement admixtures, leaving RMB613.00 million available under the revised cap.

3. Aggregation with Other Transactions: • Including a separate RMB160.00 million framework agreement for concrete and other admixtures, the combined cap with Conch Material Technology over the 12-month period totals RMB940.00 million. • The aggregated amount represents more than 0.1 per cent but less than 5 per cent of Conch Cement’s applicable percentage ratios, triggering disclosure and annual review requirements under Hong Kong Listing Rules but exempting the transactions from independent shareholders’ approval.

Rationale: International geopolitical tensions have driven up global chemical feedstock prices, prompting suppliers to seek price increases. The revised pricing formula is intended to secure stable supply and product quality while aligning costs with market movements.

Governance: The board approved the supplemental contract unanimously; directors connected to Conch Holdings and its subsidiaries abstained. The independent non-executive directors concurred that the terms are on normal commercial conditions and in the interests of shareholders.

Connected-Party Context: Conch Holdings controls 100 per cent of Conch Tech Innovation Material, which owns 36.47 per cent of Conch Material Technology, rendering the supplier a connected person to Conch Cement. The transactions therefore constitute continuing connected transactions under both Hong Kong and Shanghai listing regimes, with all procedural requirements met.