China State Construction Engineering Corporation Limited and China State Construction Development Holdings Limited announced references are made to the announcement jointly issued by CSC and CSCD dated 19 October 2020 and the circular of CSCD dated 20 November 2020 in relation to, among other things, the Previous CSCD-CSCECL Sub-construction Engagement Agreement entered into between CSCECL and CSCD which will expire on 31 December 2023. It is contemplated that the CSCECL Group will continue to invite the CSCD Group to tender for the CSCECL Group's construction works after the expiration of the Previous CSCD-CSCECL Sub-construction Engagement Agreement. In this connection, on 20 October 2023, CSCECL and CSCD entered into the New CSCD-CSCECL Sub-construction Engagement Agreement to renew the Previous CSCD-CSCECL Sub-construction Engagement Agreement for a further term of three years commencing from 1 January 2024 and ending on 31 December 2026 (both days inclusive).

Pursuant to the New CSCD-CSCECL Sub-construction Engagement Agreement, the CSCECL Group may engage the CSCD Group as its subcontractor or service provider (as the case may be) for provision of the CSCECL Works from time to time subject to the CSCECL Works Caps. Any member of the CSCD Group may act as subcontractor or service provider (as the case may be) of the CSCECL Group for provision of the CSCECL Works in accordance with the tendering procedures of the CSCECL Group from time to time (the CSCECL Works Transactions); the parties may from time to time enter into further specific contracts, which set out the detailed terms in relation to the engagement of the CSCD Group to act as subcontractor or service provider (as the case may be) of the CSCECL Group for provision of the CSCECL Works, provided that the total contract sum that may be awarded by the CSCECL Group to the CSCD Group under the New CSCD-CSCECL Sub-construction Engagement Agreement for the financial years ending 31 December 2024, 2025 and 2026 shall not exceed HKD 1,200 million, HKD 1,500 million and HKD 1,500 million, respectively (that is the CSCECL Works Caps). The terms of the specific contracts will be negotiated on an arm's length basis between the parties; and the fees payable by the CSCECL Group to the CSCD Group will be settled pursuant to the payment terms set out in the specific contracts.