Shenzhen Investment Holdings Bay Area Development Company Limited has disclosed details of a major and connected transaction regarding the civil engineering construction works of the Shenzhen section of the Beijing-Hong Kong-Macao Expressway. Under an agreement referred to as the SZ Construction Works Agreement (TJ2 Section), the contractor Poly Changda will undertake a 4.94 km segment in Bao’an District, Shenzhen, with a contract price of approximately RMB1.448 billion.
According to the announcement, GSZ Company, a subsidiary deemed under the company, awarded the contract through open tender. The tender process evaluated 13 bidders based on pricing, construction plan, and technical capabilities. Poly Changda, an associate of a substantial shareholder of GSZ Company, emerged as the winning bidder. The planned work spans 66 months, and any delay due to the contractor will incur specific fees. Quality guarantee and performance guarantees have been laid out to safeguard construction standards.
The agreement’s purpose is to address heavy traffic volumes on the Shenzhen section of the Beijing-Hong Kong-Macao Expressway by expanding certain stretches from dual six-lane to dual ten-lane carriageways. This project forms part of the broader reconstruction and expansion initiative for the Guangzhou-Shenzhen Section of the expressway, which runs through vital economic zones in Guangdong Province.
Financing for SZ Construction Works Agreement (TJ2 Section) is expected to involve internal resources and/or external bank facilities. Shareholders holding over 50% of the company’s issued shares have granted written approval. Consequently, no separate general meeting is required. The transaction is categorized as a major and connected transaction under the Listing Rules but is exempt from certain independent shareholder approval requirements, as the terms have been confirmed fair and reasonable by the board.
This construction agreement aligns with the company’s strategy of investing in and enhancing key expressway infrastructure in the Guangdong-Hong Kong-Macao Greater Bay Area.