Anhui Conch Material Technology Co., Ltd. (“CONCH MAT TECH”) disclosed that its 68.25%-owned unit, Ningbo Conch New Material Technology Co., Ltd., executed a Polyether Products Framework Agreement with Hengguang New Materials (Jiangsu) Co., Ltd. on 31 March 2026.

The framework covers the period from 1 April 2026 to 31 December 2026 and allows Hengguang to procure polyether polyols, allyl alcohol ethers and related products on an as-needed basis. The aggregate contract value under all sub-contracts is capped at RMB39.40 million.

This new arrangement follows a smaller Polyether Products Sales Agreement signed on 1 January 2026, under which Ningbo Conch New Material supplied approximately RMB2.60 million of polyether products to Hengguang during the first quarter of 2026.

Pricing will be negotiated on an arm’s-length basis, referenced to prevailing market rates, production complexity and cost of raw materials. Internal controls require the sales team to benchmark external market quotes to ensure terms are no less favourable to CONCH MAT TECH than those available to independent third parties.

Hengguang is an associate of Conch Tech Innovation, which owns 36.47% of CONCH MAT TECH and 51.88% of Hengguang. Consequently, the transactions constitute continuing connected transactions under Chapter 14A of the Hong Kong Listing Rules. After aggregating the two agreements, all percentage ratios remain below the 5% threshold; therefore, the arrangement is subject to announcement, reporting and annual review requirements but is exempt from circular and independent shareholders’ approval.

The board—excluding two directors who abstained due to interests in related parties—believes the framework is conducted in the ordinary course of business on normal commercial terms and is beneficial for capturing market share in the polyether segment while providing Hengguang with a stable supply chain.