China Communications Services Corporation Limited referred to the 2015 announcement and circular in relation to the Continuing Connected Transactions between the Group and China Telecommunications Corporation and/or its associates which are governed by the 2015 Agreements as: As each of the 2015 Agreements will expire on 31 December 2018, the company entered into the 2018 Supplemental Agreements with China Telecom on 28 September 2018 based on the 2015 Agreements to, among other things, renew each of the 2015 Agreements for a further term of three years from 1 January 2019 to 31 December 2021, change contact information of China Telecom and adjust the terms related to tender process of the Engineering Framework Agreement pursuant to the applicable PRC regulations. Other key terms of each of the 2015 Agreements remain unchanged. Pursuant to the Engineering Framework Agreement, the Company agreed to provide certain engineering related services, such as design, construction, project supervision and management for telecommunications infrastructure projects undertaken by China Telecom Group. The scope of the Engineering Framework Agreement covers transactions between the Company (and its subsidiaries) and China Telecom (and its subsidiaries but excluding the Group), as may be applicable from time to time. The charges for engineering related services rendered under the Engineering Framework Agreement shall be determined at market price or prices obtained through tender process. According to the supplemental agreement to the Engineering Framework Agreement entered into between the Company and China Telecom, the parties amended the thresholds which the project must be determined through tender process under the Engineering Framework Agreement: whenever the value of any design or project supervision and management project exceeds RMB1 million, or the value of any construction project exceeds RMB 4 million, the award of the relevant project must be subject to a tender process (with a minimum of three parties tendering bids) in accordance with the Bidding Law of the PRC and Regulation on the Implementation of the Bidding Law of the PRC, except as otherwise provided by related laws and regulations. The amendments were made in accordance with the Provisions on Projects Subject to Tender Process issued under the Order No. 16 of the National Development and Reform Commission of the PRC in March 2018, which increased the threshold for design or project supervision and management projects that must be determined through tender process from RMB 0.5 million to RMB 1 million, and the threshold for construction project that must be determined through tender process from RMB 2 million to RMB 4 million. China Telecom Group (including the Group) has also adjusted the internal guidelines and increased such thresholds accordingly.