Sinofert Holdings Limited (297) released a circular dated 4 December 2025 regarding deposit services under a Financial Services Framework Agreement (the “Agreement”) signed with Sinochem Finance. According to the announcement, the maximum daily outstanding deposit balance under the Agreement is proposed to increase from RMB3.0 billion to RMB5.0 billion and the agreement term is set to extend for three years, effective after obtaining Independent Shareholders’ approval. A Special General Meeting is arranged on 19 December 2025 to seek approval of these matters.

The deposit interest rates offered by Sinochem Finance shall not be lower than those provided by comparable independent commercial banks in the PRC. Risk control measures are outlined, including monitoring Sinochem Finance’s capital adequacy ratio, regular reporting of operating conditions, and ensuring that the Group’s overall financial assistance to Sinochem Holdings and its associates will not exceed 50% of the Group’s latest published consolidated net assets. If any member of the Group fails to recover its deposits from Sinochem Finance, it has the right to offset against any outstanding amounts due to Sinochem Finance by any member of the Group.

Sinochem Finance, 37% owned by Sinochem Holdings, is supervised by the National Financial Regulatory Administration. It has registered and fully paid-up capital of RMB6.0 billion and met relevant regulatory requirements, including a reported capital adequacy ratio above the minimum of 10.5%. Should this Agreement receive Independent Shareholders’ approval, it is expected to facilitate Sinofert Holdings Limited’s growing procurement and settlement needs while providing more favorable deposit interest rates than comparable market options.