Changxin Boron Technology Co., Ltd.
Announcement on the Signing of a Major Daily Operations Agreement by its Holding Subsidiary
The company and the entire board of directors guarantee that the information disclosed is true, accurate, and complete, and that there are no false records, misleading statements, or major omissions.
Special Notice:
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Agreement Type: Changxin Boron Technology Co., Ltd. (hereinafter referred to as the "Company")'s holding subsidiary, Changxin Sheng (Wuhan) Technology Co., Ltd. (hereinafter referred to as "Changxin Sheng Wuhan"), has signed a long-term cooperation agreement (hereinafter referred to as the "Agreement" or "this Agreement") with an existing customer.
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Agreement Effective Conditions and Term: The Agreement shall take effect from the date of signing by both parties and shall be valid from the effective date until December 31, 2030.
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Agreement Amount: This Agreement does not specify a fixed total sales amount. Based on calculations, the estimated sales amount within the validity period of the Agreement is approximately RMB 4.5 billion (excluding tax, converted at the middle rate of USD to RMB announced by the People's Bank of China on July 27, 2026). The actual sales amount will be subject to the confirmed orders and the product unit prices negotiated at that time.
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This transaction involves Changxin Sheng Wuhan selling a basket of optical fiber and cable related products to an existing customer. To meet the customer's comprehensive procurement needs, the Company plans to purchase a basket of optical fiber and cable related products in batches from external suppliers based on the customer's actual order situation and then deliver them to the customer. Considering the business substance of this transaction, the responsibilities and obligations undertaken by the Company in the transaction, etc., this sale is expected to be recognized using the net method, i.e., recognizing revenue based on the gross profit actually obtained by the Company in this transaction. The specific revenue recognition will be determined based on the progress of the Agreement's performance, in accordance with the enterprise accounting standards and the Company's accounting policies, with the final results subject to the audit data of the accounting firm.
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Given that this Agreement uses the net method for revenue recognition, the signing of this Agreement is not expected to have a significant impact on the Company's operating performance in 2026 and future years. At the same time, this Agreement does not specify a fixed total sales amount.