Chengdu Expressway (01785) announced that its wholly owned subsidiary, Chengdu Chengwenqiong Expressway Co., Ltd., has awarded Chengdu Chengtou Urban Construction Technology Co., Ltd. a Precast Concrete Component Procurement Contract for the YZ bidding section of the Chengwenqiong Expressway Expansion Project.
Key terms • Contract value: RMB 234.22 million (USD 32.4 million), tax inclusive. • Scope: Supply, transport and on-site technical support for precast small box girders, pier columns and cap beams. • Delivery period: 30 months. • Payment schedule: 10% on delivery of moulds and site setup; 50%–80% monthly progress payments; 95% on completion of supply; 97% after delivery settlement; final balance after project acceptance. • Guarantees: 10% performance bond; quality guarantee deposit capped at 3% of contract price with a 24-month warranty. • Funding source: subsidiary’s self-raised funds.
Listing Rules classification The contract’s highest applicable percentage ratio exceeds 5% but is below 25%, making it a discloseable transaction under Chapter 14 of the Hong Kong Listing Rules. No shareholder approval is required.
Strategic context The procurement forms part of the RMB 12.65 billion Chengwenqiong Expressway Expansion Project, a BOT scheme to widen the existing 65.6 km Chengdu–Wenjiang–Qionglai route to eight lanes. Construction began on 29 August 2025 after approval by the Sichuan Development and Reform Commission. Management expects the expansion to alleviate congestion, enhance regional connectivity in western Chengdu and strengthen the company’s asset base and long-term earnings potential.
Counterparty profile Chengdu Chengtou Urban Construction is a PRC-based producer of precast concrete components, held 50.00% by state-owned Chengdu Chengtou Construction Materials Group. Chengdu Expressway confirmed that the supplier and its ultimate shareholders are independent third parties.
The contract is integral to the timely execution of the expansion project and aligns with Chengdu Expressway’s core highway operations strategy.