An affiliate of Sichuan Express (00107), Sichuan Express Xingshu Supply Chain Management Co., Ltd., has entered into a termination agreement with the purchaser, effectively canceling a prior sand and gravel procurement contract. The agreement, signed on April 30, 2026, cites business adjustments at the supply chain company as the reason for termination, noting that the original contract no longer has a viable basis for continuation.

Under the terms of the termination agreement, both parties will settle accounts related to payments and performance bonds incurred during the contract period. The purchaser is required to make the final payment within three months after a settlement statement is issued and finalized.

Apart from the settlement amounts specified in the termination agreement, both sides have confirmed that there are no other outstanding debts, fees, or claims between them.

Sichuan Express stated that the terms of the termination agreement were negotiated on normal commercial terms, are fair and reasonable, and align with the overall interests of the company and its shareholders. The company does not expect the termination to have a material impact on its operations or financial condition.