Yipuli awards contract for green blasting innovation center to related party

Yipuli Co., Ltd. has awarded a construction contract valued at CNY 225 million (including tax) to China Gezhouba Group Construction Engineering Co., Ltd. for the "China Energy Engineering Green Civilian Blasting Innovation Development Center Project." The project, to be built in Changsha City, Hunan Province, is scheduled for completion by December 31, 2026. This is a related-party transaction as China Gezhouba Group Co., Ltd., the parent company of the contractor, holds 43.37% of Yipuli's shares.

The contract was awarded following a public tender process, with China Gezhouba Group Construction Engineering Co., Ltd. selected from multiple bidders. The transaction amount represents 3% of Yipuli's latest audited net assets. Yipuli’s board of directors approved the transaction on September 10, 2025, with independent directors agreeing it adheres to fair and transparent pricing, ensuring project quality and protecting shareholder interests.

The pricing aligns with national and local construction costing standards. This related-party transaction will not negatively impact Yipuli's financial condition or operating results. As of early 2025, there have been no other related-party transactions with China Gezhouba Group Construction Engineering Co., Ltd.