Powerlong Commercial renews digitalization service agreement with connected party

Powerlong Commercial Management Holdings Limited announced the renewal of its digitalization technology service agreement with Shanghai Yueshang, a connected person. The new "2026 Digitalization Service Agreement" will commence on January 1, 2026, and run for three years until December 31, 2028. This agreement supersedes the prior 2023 Digitalization Service Agreement, which expires on December 31, 2025.

Under the renewed agreement, Shanghai Yueshang will continue to provide various digitalization technology services, including building internet digital services, information systems, and hardware deployment on a project-by-project basis. Service fees will be determined on normal commercial terms and through negotiation based on fair market prices, with payment settled in cash within 30 days of work confirmation.

The proposed annual caps for these services are RMB30,000,000 for each of the three years ending December 31, 2026, 2027, and 2028. This decision is supported by the Group's five-year strategic plan, anticipated demand, and historical transaction amounts, which were RMB14,300,000 in 2023, RMB7,400,000 in 2024, and RMB5,000,000 for the period from January 1, 2025, to November 30, 2025. Given that the applicable percentage ratios are between 0.1% and 5% annually, the transaction is subject to reporting and announcement requirements but is exempt from circular and independent shareholder approval.