Capital Environment Holdings Limited (03989) released a supplemental announcement regarding its connected transactions in relation to AI research and development projects. This follows an announcement dated 12 February 2026 detailing two agreements involving Capital Eco Group, certain subsidiaries within the Group, as well as other companies.

Agreement 1 carries a total contract price of RMB9.65 million, determined on a cost-plus basis. The Group Companies’ portion of this total amounts to RMB3.61 million, with an estimated profit margin of about 13.08%. Management considers this margin reasonable, aligning with internal profit control requirements and reflecting the experience, capabilities, and potential operational benefits expected from the project.

Agreement 2 has a total contract price of RMB5.69 million, also determined on a cost-plus basis. Capital Environmental Sanitation Company’s portion of RMB0.56 million comes with an estimated profit margin of roughly 11.11%. Management also regards this figure as appropriate, citing similar considerations related to internal policies, project scope, and anticipated technical know-how.

The company advises that this supplemental information should be read in conjunction with the earlier announcement and reaffirms that other details remain unchanged. As of the date of the announcement, the board of Capital Environment Holdings Limited comprises two executive directors, one non-executive director, and four independent non-executive directors.