China Starch Holdings inks 70m yuan thermal plant construction deal

China Starch Holdings Limited announced a 70.0 million yuan Thermal Plant Construction Contract between its indirect non-wholly-owned subsidiary, DGC, and Juneng Construction. Under the contract dated November 19, 2025, Juneng Construction will provide construction services for a thermal power plant in Linqing City, Shandong Province, PRC. The project involves installing a dual boiler system, a high-efficiency turbine generator, and auxiliary facilities. Construction is expected to begin around January 30, 2026, and be completed by March 31, 2027.

The contract sum of 70.0 million yuan was determined after factoring in a 14% contract rebate, considering a Budget Estimation Report, project specifications, and arm's length negotiations. The payment terms include monthly progress payments, with final payments upon completion, project settlement review, and after a quality guarantee deposit period. The project is crucial for supporting the Group's expanding cornstarch production facilities and ensuring a stable steam and energy supply.

As the highest applicable percentage ratio exceeds 5% but is less than 25%, the transaction constitutes a discloseable transaction under Chapter 14 of the Listing Rules. Furthermore, Juneng Construction is deemed a connected person of the Company, making it a connected transaction subject to reporting, announcement, circular, and independent shareholders' approval requirements under Chapter 14A of the Listing Rules.