On 13 July 2023 (after trading hours), CR Construction Group Holdings Limited (the Company) (for itself and on behalf of its subsidiaries, which excludes the Group) with a term commencing from the Effective Date and ending on 31 December 2025. Pursuant to the Framework Agreement, (i) the Group will supply the Group's Products and Group's Services to Zhejiang Construction Group; and (ii) Zhejiang Construction Group will supply ZC's Products and ZC's Services to the Group. As at the date of this announcement, Zhejiang Construction is indirectly interested in approximately 72.23% of the entire issued share capital of the Company.

Accordingly, Zhejiang Construction is the controlling shareholder of the Company and hence a connected person of the Company under Chapter 14A of the Listing Rules. Therefore, the entering into of the Framework Agreement by the Company and ZC's Services constitutes a continuing connected transaction of the Company under Chapter 14 A of the Listing Rules. As the highest applicable percentage ratio (as defined under the Listing Rules) in respect of the Proposed Annual Caps under the Framework Agreement exceeds 5%, the transactions contemplated thereunder constitute a non-exempt continuing connected transaction of the Company, which is subject to the reporting, announcement, annual review and the Independent Shareholders' approval requirement under Chapter 14A of the listing Rules.

An Independent Board Committee comprising all the independent non-executive Directors, namely The Honourable Tse Wai Chun Paul JP, Mr. Lau Pak Shing, Mr. Ho Man Yiu Ivan and Mr. Lai Yuk Fai Stephen JP, has been established by the Company to advise and provide recommendation(s) to the Independent Shareholders in respect of the Framework Agreement and the Proposed Annual Caps. In such connection, the Independent Financial Adviser has been appointed to advise the Independent Board Committee and the Independent Shareholders in this regard.