The Board announced that SOCAM Development Limited and Shui On Land Limited entered into the Framework Agreement. Pursuant to the Framework Agreement, member of the SOCAM Group shall provide the following work and/or services to member of the SOL Group in respect of its property development in the PRC: construction work involving installation of smart facilities and equipment, implementation of building management, and installation, update and repair of related hardware and software systems to improve the efficiency of energy consumption and facility management; energy saving services to ensure the outcome of the work mentioned in paragraph (a) aligns with the designated milestone target; and after sales services/maintenance services for such smart facilities and equipment installed for no more than five (5) years. Term: Commencing on 31 March 2023 and expiring on 31 December 2028 (both days inclusive).

Consideration and pricing policies: The fees payable by member of the SOL Group to member of the SOCAM Group for its provision of the Smart Facility Enhancement Work under the Specific Contracts shall be determined by the relevant member of the SOCAM Group and the SOL Group based on arm's length negotiation in a fair and reasonable manner on the following basis: in relation to smart facilities construction work: The fees shall be determined on a cost-plus basis with a margin of 8% to 15% depending on factors including but not limited to complexity of the project, labour required, costs of the smart facilities and equipment to be installed and materials required, prevailing market prices of comparable construction works provided by the relevant members of the SOCAM Group to independent third parties and projected inflation rate. in relation to construction work with energy saving services: The relevant members of the SOCAM Group and the SOL Group shall set a target annual energy saving amount (the "Target Annual Energy Saving Amount") to be achieved resulting from the energy saving services provided by member of the SOCAM Group to member of the SOL Group, which shall be calculated and determined based on, among other things, the performance and condition of existing facilities and equipment, original operation mode and habit, past record of energy consumption, operation duration and frequency, potential energy saving amount calculated by computer simulation, external factors such as weather and climate, unit price of energy consumption. The actual annual energy saving amount (the "Actual Annual Energy Saving Amount") shall be the difference between the energy consumption baseline figure agreed between the relevant members of the SOCAM Group and the SOL Group and the actual energy consumption, multiplied by the same unit price of energy consumption applied in deriving the Target Annual Energy Saving Amount.

The relevant members of the SOCAM Group and the SOL Group shall share the Actual Annual Energy Saving Amount according to the energy saving sharing ratio as stipulated in the relevant Specific Contract during the energy saving sharing period (the "Energy Saving Sharing Period"). The SOCAM's Sharing Ratio and the SOL's Sharing Ratio shall vary in different years with reference to, among other things, the past energy consumption records, construction costs involved, and target energy saving rate. The fee payable by member of the SOL Group to member of the SOCAM Group shall be calculated based on the Actual Annual Energy Saving Amount multiplied by the SOCAM's Sharing Ratio.

In the circumstance that the Actual Annual Energy Saving Amount cannot reach the Target Annual Energy Saving Amount, the fee payable by member of the SOL Group to member of the SOCAM Group shall be calculated based on the Actual Annual Energy Saving Amount minus the SOL's Minimum Sharing Amount, provided that, the Actual Annual Energy Saving Amount must be higher than the SOL's Minimum Sharing Amount. in relation to after sales services/maintenance services: The service fees shall be determined on a cost-plus basis with a margin of 4% to 6% with reference to the prevailing market prices for comparable services provided by the relevant members of the SOCAM Group to independent third parties and projected inflation rate. Payment terms: The payment terms and period of each Specific Contract shall not exceed five (5) years taking into account the following factors: scope and scale of the Smart Facility Enhancement Work; target goals to be achieved during certain period and/or at different stages; the Target Annual Energy Saving Amount and the energy saving sharing ratio; and duration of after sales services and maintenance period.

The fees in relation to the provision of the Smart Facility Enhancement Work shall be settled in accordance with the terms under the Specific Contracts.