Wuhan Youji (02881) has announced that on September 23, 2026, its wholly-owned subsidiary, acting as the owner, entered into a project management services agreement with a service provider. The service provider will deliver project management and consulting services for the phase one civil construction project.

Under the agreement, a fixed service fee of RMB 4 million is payable for the project management services. The Malaysia plant's phase one is planned to include production facilities for sodium benzoate and benzyl alcohol, with designed annual capacities of approximately 15,000 tonnes and 10,000 tonnes, respectively. The phase one civil works will provide production workshops, warehousing, administrative offices, tank farm areas, as well as the external and supporting spaces required for subsequent process, equipment, and other specialized engineering, plus trial operation needs of the group's overseas production base in Malaysia.

Achievement of the planned production capacity remains subject to project progress, receipt of applicable approvals, and actual trial operation arrangements. The project delivery, inspection, and statutory supervision framework in Malaysia differs from the framework commonly adopted for the group's construction projects in China. Given the scale and technical requirements of the Malaysia plant, along with the group's emphasis on construction safety, environmental compliance, quality, materials, cost, and schedule control, the group considers it appropriate to engage an experienced project management service provider to supplement the owner's internal resources and coordinate with Malaysian design consultants, contractors, and other project participants.

The service provider was selected through a competitive invitation-to-tender process involving multiple independent third-party bidders. It achieved the highest overall evaluation results and demonstrated relevant technical capabilities, project personnel, and experience in plant construction and chemical industry projects. Following the tender process and subsequent fair negotiations, the parties agreed on a fixed service fee of RMB 4 million. The fixed fee structure also assists the group in determining and controlling the costs of project management services.