Key Highlights

• JNBY Design Limited, a leading designer brand fashion house in the PRC, has announced the signing of a significant construction contract valued at RMB600,000,000 (approximately HK\$680,400,000).
• The contract was signed on 17 April 2026 between Huipu Apparel, an indirect wholly-owned subsidiary of JNBY Design Limited, and Zhejiang Construction Engineering Group Co., Ltd., a major state-owned construction enterprise in Zhejiang Province.
• The construction is for a new digital production base, known as the New Modern Park, on recently acquired land in Hangzhou, PRC.
• The transaction is classified as a “discloseable transaction” under Hong Kong Listing Rules, triggering notification and announcement requirements but exempt from circular and shareholders’ approval requirements.

Details of the Construction Contract

• Scope of Works: The Contractor is responsible for constructing 37% (75,401 sq.m.) of a total site area of approximately 203,308 sq.m. The project will be the Phase I development of Huipu Apparel’s digital production base, featuring:
  • Foundation pit retention and protection
  • Pile foundation works
  • Earthwork and civil engineering
  • Curtain wall works
  • Installation of advanced mechanical and electrical systems (water supply, drainage, fire protection, heating, ventilation, air conditioning, low-voltage intelligent systems)
  • Interior decoration of common areas
  • Outdoor ancillary works (perimeter walls, municipal supporting facilities, integrated pipelines, landscaping and greening)
  • All other works within the construction drawings
• Timeline: Construction is expected to commence on 30 April 2026 and be completed within 976 calendar days, with a planned completion date of 31 December 2028.
• Contract Sum & Payment Terms:
  • Lump sum: RMB600,000,000 (HK\$680,400,000), fixed unit price covering all foreseeable and unforeseeable costs.
  • Payment schedule:
    • Monthly progress payments (80% of assessed value of work completed)
    • 90% of contract sum upon completion acceptance
    • 95% upon completion of settlement procedures and audit
    • 5% retained as quality warranty, released in stages over 2 and 8 years post-completion
• Performance Guarantee: Contractor must deposit either cash (5% of contract sum, not exceeding RMB2 million) or a bank guarantee (10% of contract sum) as performance security.
• Quality Maintenance: Maintenance periods range from 2 to 8 years, depending on the type of work (e.g., 8 years for roof waterproofing, 2 years for decoration and installations, 2 heating/cooling cycles for HVAC systems).

Selection Process & Rationale

• The Contractor was chosen through a competitive price inquiry and comparison process, with public invitations for quotations.
• Huipu Apparel evaluated the scope and complexity, construction cost budget (via independent consulting), and qualifications/track records of all bidders.
• The contract sum was determined based on design plans, pricing for similar past projects, quoted prices received, and the Contractor’s market position.
• Funding for the contract will come from the Group’s internal resources or bank facilities.

Strategic Impact & Shareholder Relevance

• Potential Price Sensitivity:
  • This contract is a substantial capital commitment and represents a major step in JNBY Design Limited’s long-term strategy to expand its digital research and development and intelligent warehousing capabilities.
  • The development of the New Modern Park is expected to become the corporate culture center, supporting sustained business growth and providing synergy with current headquarters.
  • The construction marks a significant investment in infrastructure, which may affect the Company’s financial profile, capital allocation, and future earnings potential.
  • Completion of this facility could unlock operational efficiencies and strengthen the Group’s competitive positioning, potentially impacting share value positively.
• Listing Rules Implications:
  • The transaction’s size triggers disclosure but does not require shareholder approval, indicating the Board’s confidence and alignment with ordinary business operations.

Background on the Parties

• JNBY Design Limited: Designs, promotes, and sells contemporary apparel, footwear, accessories, and household products across multiple brands (JNBY, CROQUIS, jnby by JNBY, LESS, POMME DE TERRE, onmygame, JNBYHOME, B1OCK).
• Huipu Apparel: Wholly foreign owned enterprise established in the PRC, focused on apparel manufacture, design, research, and wholesaling.
• Zhejiang Construction Engineering Group Co., Ltd.: Core member of Zhejiang Construction Investment Group, a top 500 Chinese enterprise and Zhejiang’s largest state-owned listed construction firm. Recognized for high-quality, award-winning projects and scientific innovation.

Conclusion

The announcement of the RMB600 million construction contract for the New Modern Park is a major capital investment, aligning with JNBY Design Limited’s growth and digital transformation strategy. Investors should note the size, scope, and strategic implications of this project, as its successful completion may enhance the Group’s operational capabilities and market value.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should perform their own due diligence and consult professional advisors before making any investment decisions. The information is based on the latest public disclosure by JNBY Design Limited as of 17 April 2026. Market conditions and company performance may evolve and affect outcomes.

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