Nanfang Comm (01617) entered into a construction contract with Jiangsu Xinxia Construction Co., Ltd. for 38.25 million yuan.

NANFANG COMM (01617) announced on February 13, 2026 that its indirect wholly-owned subsidiary, NANFANG COMM, has entered into a construction contract with contractor Jiangsu Xinsha Construction Co., Ltd. for the provision of construction services and labor for a total cost of RMB 38.25 million. According to the construction schedule for the project, NANFANG COMM will pay RMB 2.1 million in infrastructure fees to the Wujin District Housing and Urban-Rural Development Bureau by the end of February 2026. The project involves the construction and development of an industrial park, including the renovation and reconstruction of the company's former factory buildings. The contractor will be responsible for providing construction services for the project, including the construction of the industrial park and the supply of building materials and labor. The Board of Directors believes that this project is in line with the long-term development goals and business strategy of the group. In terms of operations and management, the Board believes that consolidating production capacity from two factory sites into one can achieve economies of scale and intensification of production. Procurement, logistics, and management costs will decrease due to economies of scale, allowing for a more centralized management team, thereby enhancing production efficiency and flexibility, and preparing the group for future large-scale production. Furthermore, this initiative presents an opportunity for the group to reduce overall operating costs and create new cash flows. Converting the land of old factories into modern industrial parks can significantly reduce maintenance expenses associated with outdated or obsolete equipment and facilities. The group will also consider leasing and/or selling some properties within the industrial park to explore new sources of income. The Board of Directors believes that this project is a significant opportunity to enhance the group's image and drive continued breakthroughs in its business strategy. It is expected that the project will attract elite and high-quality talents to join the group and assist in expanding its business.