CIL GROUP (01719) subsidiary signs a strategic cooperation framework agreement with Wuhan New Materials to develop new technologies and products for surface protection materials for port machinery and facilities.

CIL GROUP (01719) announced that on July 24, 2026, Tongshang Supply Chain Management (Wuhan) Co., Ltd. (Tongshang Supply Chain, an indirect wholly-owned subsidiary of the company) entered into a strategic cooperation framework agreement with Wuhan Changtao New Materials Co., Ltd. (Wuhan New Materials, an independent third party unrelated to the company). Both parties agreed to establish a five-year strategic partnership aimed at (i) researching and developing new technologies and products for surface protection materials for port machinery and facilities; (ii) applying for patents for these new technologies and products; (iii) establishing a new innovative business platform; and (iv) enhancing both parties brand effects and economic benefits, as well as promoting the sustainable development of new technologies and products for surface protection materials of port machinery and facilities. The parties to the agreement will leverage the laboratories, production and research facilities, and professional technical teams they possess to develop and establish an innovation center focused on the research and development of highly durable, multifunctional surface protection coatings and related products (new technical products). It is expected that the new technical products will (i) enhance the overall quality of surface protection for port machinery or facilities; (ii) strengthen the corrosion resistance and stain resistance of port machinery or facilities; and (iii) effectively extend the maintenance cycle of port machinery or facilities, significantly reducing maintenance costs. Under the agreement, both parties agree that (i) the production of new technical products will follow the product design formulations developed in the laboratory and will be carried out by the factory and related equipment owned by Wuhan New Materials, which will be responsible for procuring all or part of the raw materials needed for the production of new technical products, while Tongshang Supply Chain will oversee the entire production process; (ii) Tongshang Supply Chain will be the sole sales platform for the exclusive sale of new technical products within the port industry, and without written consent from Tongshang Supply Chain, Wuhan New Materials shall not provide new technical products to any third party within the port industry; and (iii) all intellectual property rights for the new technical products will belong to Tongshang Supply Chain. The parties to the agreement will formalize this business project execution and implementation through a formal agreement. Our company has been deeply engaged in the trade sector for many years, possessing stable port customer resources and established market operation and supply chain integration capabilities. Our company will leverage its supply chain and port channel resources to drive the strategic transformation and upgrading of traditional trade business towards the new technology product industry, with a particular focus on the port industry, cultivating the industrial anti-corrosion coating sector, and constructing an integrated anti-corrosion solution service system to foster new growth momentum for the Groups high-quality development. The strategic cooperation arrangements under the agreement will enable our company to jointly develop and produce new technical products with Wuhan New Materials, and the vertical integration into the production of new technical products will position our Group as a comprehensive service provider of new anti-corrosion materials for ports, aligning with our Groups long-term development strategy. It is anticipated that once implemented, this strategic cooperation arrangement will expand and diversify the Groups business, broadening its revenue base, thus aligning with the overall interests of our company and its shareholders.