On January 1, 2026 Telecommunication Facilities Construction Services Agreement, (ii) the 2026 Power Support and Other Network Assets and Resources Leasing Agreement and the 2025-2027 Machinery Rooms and Transmission Pipelines Leasing Agreement on an aggregate basis, and (iii) the 2026 Telecommunications and Information Services Agreement exceeds 0.1% but is below 5%, such transactions are classified as continuing connected transactions under Rule 14A.76(2) of the Hong Kong Listing Rules, which are only subject to the reporting, annual review and announcement requirements set out in the Hong Kong Listing Rules but are exempt from the independent shareholders' approval requirement under the Hong Kong Listing Rules. Details of the 2026 Tele communication Facilities Construction Services Agreement, the 2026 Power Support and other Network Assets and Resources Leasing agreement and the 2026 Telecommunications and Information services will be included in the annual report and accounts of the Company in accordance with Rules 14A.49, 14A.71 and 14A.72 of the Hong Kong Listing rules.Date of agreement: 1 January 2026 Parties: the Company CMCC Duration: One year, expiring on 31 December 2026 Services to be provided: (i) Telecommunications project planning, design and consultation services; (ii) telecommunications project construction services; and (iii) maintenance services in respect of telecommunication facilities and equipment by the Group to CMCC and its subsidiaries Pricing term: The provision of telecommunication facilities construction services by the Group to CMCC and its subsidiaries in respect of individual projects will be subject to public tender process. The selection of contractor in the public tender process will be based on a number of factors including price, technical skills and overall capability, and the telecommunication facilities construction services charges will be determined in such public tender process.
The pricing for the telecommunication facilities construction services will be primarily based on market rates as determined through the public tender process, and shall comply with laws and regulations such as "Pricing Law of the People's Republic of China" and "Notice on the Publication of Budgets, Fee Rates and Budget Planning Procedures for Information and Telecommunications Construction Projects (Gong Xin Bu Tong Xin [2016] No. 451)" [2016]451 will be complied with. For individual projects not subject to the public tender process, selection criteria and pricing mechanism similar to those in a public tender process will be applied.
Payment term: Services charges for telecommunications project planning, design and consultation services will be payable by instalments or upon completion of provision of services. Services charges for telecommunications project construction services will be payable in cash by instalments, typically with 10% payable upon signing of relevant engagement, 70% over the course of the construction and the remaining amount payable upon completion and acceptance of the project. Services charges for maintenance services in respect of telecommunication facilities and equipment will be payable monthly.
