China State Construction International Holdings Limited (CSCI, 03311) announced that its 70.79%-owned subsidiary, China State Construction Development Holdings (CSCD, 00830), has entered into a Financial Services Agreement with China State Construction Finance (CSCF) on 22 May 2026.

The agreement grants CSCD non-exclusive access to deposit, loan and ancillary financial services provided by CSCF from 1 June 2026 to 31 December 2028. Key commercial parameters are as follows:

• Deposit Services: – Cap: The maximum daily outstanding deposit balance, inclusive of accrued interest, is set at RMB57 million. – Pricing: Interest rate will be the higher of (i) the best rate quoted by at least three major PRC commercial banks and (ii) CSCF’s quoted rate.

• Loan Services: – Loans will be unsecured and priced at the lower of (i) the most competitive rate from at least three major PRC commercial banks and (ii) CSCF’s quoted rate. – A built-in covenant limits the ratio of CSCD’s average monthly deposits with CSCF to its average monthly borrowings from CSCF at no more than 1:1.

• Other Financial Services: – Centralised fund monitoring, entrusted loans and cross-border RMB pooling are provided free of charge. – Guarantee services, if used, will be charged at the lower of (i) the most competitive market fee and (ii) CSCF’s quoted fee.

Regulatory Classification

The transactions constitute continuing connected transactions under Hong Kong Listing Rules. When aggregated with similar arrangements disclosed on 17 December 2025, the combined percentage ratios exceed 0.1% but remain below 5%. Consequently, the deposit element is subject to reporting, announcement and annual review, while shareholder approval is not required. Loan and guarantee services, conducted on normal commercial terms without collateral, as well as the minimal-fee ancillary services, are fully exempt from these requirements.

Risk Management & Internal Controls

CSCD has outlined multiple safeguards, including real-time cap monitoring, quarterly financial reviews of CSCF, and monthly reconciliations of transaction volumes. CSCF must also provide quarterly financial statements and notify CSCD within two business days of any event that could affect deposit security.

Strategic Rationale

Management expects the framework to: 1. Secure flexible funding during market volatility; 2. Lower financing and service costs via preferential or zero-fee offerings; 3. Enable efficient cross-border fund utilisation; 4. Enhance cash-flow visibility through centralised fund monitoring; and 5. Improve group-wide capital synergies via entrusted loan arrangements.

The board, including all independent non-executive directors, deems the terms fair, on normal commercial terms and in the interests of shareholders. No director holds a material interest; however, Chairman Zhang Haipeng and Non-executive Director Yan Jianguo voluntarily abstained from voting on the resolution.