China Frontier Tech discloses RMB35.23 million and US$9.72 million advances to ATOP for chip-material procurement

China Frontier Technology Group (CH Frontier Tec) has reported to the Hong Kong Stock Exchange, pursuant to Listing Rule 13.13, that it extended two interest-free advance payments to ATOP Corporation for the purchase of chip materials required in the production of specific communication products destined for the Group.

On 9 July 2026, wholly owned subsidiary Broadcom Advanced New Materials (Shenzhen) Co., Ltd. signed a framework agreement with ATOP, followed by a separate framework agreement between the parent company and ATOP on 10 July 2026. Both agreements appoint ATOP to purchase chip materials from designated suppliers exclusively for the Group’s manufacturing schedule.

Funding details • Broadcom Advanced remitted RMB35.23 million to ATOP on 10 July 2026. • The parent company paid US$9.72 million (approximately RMB66.10 million) on 22 July 2026 to Morrihan International Corp., a supplier named by ATOP; this sum is deemed an advance to ATOP under the agreement.

Contract mechanics • The advances carry no interest and can be offset against purchase prices or refunded at the Group’s option. • Should ATOP default—failing to allocate the chip materials to the Group’s production—China Frontier Technology may: – dispose of or sell the materials, or compel ATOP to repurchase them at cost plus 20 % liquidated damages; – demand repayment of the advances with a default charge calculated at four times the one-year Loan Prime Rate; – exercise security over ATOP’s current and future inventories under a movable-property floating charge. • Ownership of the procured chip materials vests in the relevant Group entity upon purchase.

Regulatory impact Because the combined advances exceed 8 % of the Group’s total assets, the disclosure threshold under Rule 13.13 is met. Further disclosure will be provided under Rule 13.20 if the position persists at interim or year-end reporting dates.

Corporate background China Frontier Technology Group, incorporated in the Cayman Islands, operates event marketing, sports services and functional-materials trading in mainland China and Hong Kong. Broadcom Advanced focuses on functional-materials trading. ATOP Corporation, based in the PRC, develops and manufactures optical modules and devices for data-centre and optical-communication applications. The parties are independent of each other, and the framework agreements were concluded on normal commercial terms.