Yuexiu Transport Infrastructure Limited has executed a Digitalisation Services Framework Agreement with fellow Guangzhou Yue Xiu Holdings (GZYX) subsidiary Guangzhou Yuexiu Digital Intelligence Technology Co., Ltd.
Key terms and scale
1. Contract period: 25 June 2026–31 December 2028. 2. Service scope: • System development and implementation • System operation and maintenance • Digital foundation (cloud and platform) services • Other digital services linked to the group’s artificial-intelligence-driven transformation 3. Pricing: arm’s-length negotiation referenced to labour costs, required service specifications, comparable third-party quotations and prevailing market rates. 4. Payment: to be stipulated in individual service agreements, either annually or by completed project.
Financial dimensions
• Historical spend: RMB3.30 million between 1 May 2025 and 31 December 2025. • Annual caps under the new framework: – 2026: RMB11.80 million – 2027: RMB13.99 million – 2028: RMB16.45 million • Aggregate three-year cap: RMB42.24 million.
Strategic rationale
The agreement consolidates multiple existing and future procurement needs as the group accelerates digital transformation across expressway and bridge operations. Anticipated drivers of higher spending include AI platform build-outs, expansion of data-analytics products for traffic management, and increased demand for cloud infrastructure and system maintenance.
Connected-transaction classification
Because GZYX is the ultimate controlling shareholder of both Yuexiu Transport Infrastructure and Yuexiu Digital Intelligence, the arrangement constitutes a continuing connected transaction under Chapter 14A of the Hong Kong Listing Rules. The highest applicable percentage ratio is above 0.1 % but below 5 %, subjecting the deal to reporting, annual review and announcement requirements while exempting it from circular and independent shareholders’ approval.
Risk management and governance
The board approved the framework agreement, with no director deemed materially interested. To safeguard minority interests, the group has instituted:
• Ongoing monitoring to ensure annual caps are not exceeded. • Comparative pricing via competitive tenders or at least two third-party quotations. • Semi-annual audit-committee reviews and annual confirmation by independent non-executive directors. • Annual assurance by the company’s external auditor in line with HKSAE 3000 and PN 740 (Revised).
Company profiles
Yuexiu Transport Infrastructure focuses on investment, development and operation of expressways and bridges in Guangdong and other high-growth provinces in Mainland China.
Yuexiu Digital Intelligence specialises in digital platform development, AI applications, big-data services and cloud infrastructure. Both entities are ultimately controlled by GZYX, the Guangzhou municipal conglomerate with core businesses in finance, real estate and transportation.