CALB Group Co., Ltd. (CALB) has signed Supplemental Agreement III with Jiangsu Chengdong Construction Projects Co., Ltd. to raise the 2026 annual cap under the existing 2024-2026 Engineering and Construction Framework Agreement from RMB460 million to RMB1.60 billion, an increase of 247.83%.
The framework covers design, procurement and construction services for CALB’s industrial parks and buildings. Key drivers for the higher limit include:
• Contracted fees of RMB231.70 million during the first five months of 2026, representing 50.4% utilisation of the previous RMB460 million cap; management projects the utilisation ratio will reach 70-80% by mid-year.
• Plans to launch three new production-line construction projects in 2026, with combined fees expected to exceed RMB1.10 billion.
Historical transaction amounts under the agreement totalled RMB383.34 million in 2024, RMB161.26 million in 2025 and RMB231.70 million for the five months to 31 May 2026.
Listing Rules implications Because Changzhou Zhongcheng Industrial Co., Ltd. (an indirect subsidiary of CALB’s 26.02% shareholder Jintan Holding) controls 54.18% voting rights in Jiangsu Chengdong Construction, the contractor is deemed a connected person. The revised cap’s highest applicable percentage ratio is above 0.1% but below 5%; therefore, the transactions require reporting, announcement and annual review but are exempt from circular and independent shareholders’ approval.
Board deliberations All directors, except two non-executive directors linked to Jintan Holding, approved the new cap, concluding the terms are fair, reasonable and in the interests of shareholders.
Internal controls CALB will continue to enforce its connected-transaction management system, relying on multi-departmental monitoring, competitive tendering (minimum three bidders), semi-annual reviews and external auditor oversight to ensure pricing and terms match or exceed those offered by independent third parties.
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