CHINA STATE CON (03311) subsidiary entering into factoring arrangement

China State Construction (03311) issued an announcement on August 20, 2025. On the same day, China State International Investment (an indirect wholly-owned subsidiary of the Company) entered into a factoring arrangement and an accounts receivable assignment contract with Huzhou Haichuang. Additionally, a factoring contract was signed with China State Commercial Factoring for the transfer of accounts receivable. China State Commercial Factoring provided a principal amount of RMB 200 million to China State International Investment at a discount rate of 92.8%, and agreed to provide accounts receivable factoring services for a period not exceeding 18 months from the date of withdrawal according to the factoring contract. As the factoring arrangement can provide immediate available funds for the Group for operating capital and business development, entering into the factoring arrangement is beneficial for the Group. It also allows the Group to meet the needs of development in working capital and diversify the Group's financing channels, thereby optimizing the Group's asset structure, improving capital efficiency, and enhancing operational capabilities.