Pacific Textiles Holdings Limited announced that the company dated 30 March 2021 in relation to the continuing connected transactions and the relevant annual caps for the transactions contemplated under the Existing Master Agreement with the Toray Group, which will expire on 31 March 2024. In order to renew the continuing connected transactions under the Existing Master Agreement and to continue the business relationships between the Toray Group and the Group, on 22 March 2024, the Company and Toray entered into the Master Agreement in relation to the sale of fabrics manufactured or owned by the Group to the Toray Group for a term of three years commencing from 1 April 2024 and ending on 31 March 2027. The transactions under the Master Agreement will be carried out on normal commercial terms and subject to and upon the terms and conditions contained in the purchase orders to be agreed between the relevant parties.

Term and termination: The term of the Master Agreement commences on 1 April 2024 and continues until 31 March 2027, which will be automatically renewed for a further term of three years subject to compliance by the Company with any applicable requirements under the Listing Rules. The Master Agreement may be terminated at any time by either party after giving three months' prior written notice to the other party. Pricing policy: The prices for the fabrics will be determined among the parties from time to time on an arm's length basis and comparable to the prevailing market rates or at rates similar to those offered by the Group to independent third parties, based on the standard price of fabrics of the Group.

The standard price of fabrics of the Group is determined by reference to the Group's cost of raw materials, knitting method and technique required for the fabrics, specifications of products (including elasticity, colors, etc.) and other relevant production costs. The final price for each transaction may be negotiated based on further detailed product requirements or specifications, quantity, weight, lead time, prevailing market conditions etc. subject to the incorporation of a reasonable profit margin.

Payment Terms: The relevant member of the Group will issue an invoice to the relevant member of the Toray Group on or after delivery of the Products, and payment shall be made in accordance with the terms of the purchase order.