Yuexiu Transport Infrastructure Limited (Stock Code: 01052) announced that its indirect non-wholly owned subsidiary, Guangzhou North Second Ring Transport Technology Company Limited (“GNSR Company”), has issued a Letter of Award to Guangdong Chengtai Transportation Technology Development Company Limited (“Chengtai Transportation”) on 5 February 2026. The parties will enter into a mechanical and electrical engineering construction agreement within 30 days from the date of the Letter of Award.
According to official information, the awarded project covers mechanical and electrical work on monitoring, communication, and tolling systems for a 38.3-kilometer section (JD1) of the Guangzhou City Northern Second Ring Expressway (the “GNSR Expressway”). The total contract amount is RMB233,599,472, inclusive of value-added tax. Chengtai Transportation’s selection followed an open tendering process, during which GNSR Company evaluated factors such as bidding proposals, industry reputation, technical indicators, pricing, and track record.
Under the agreement, Chengtai Transportation will complete the project within a 48-month construction period. The contract also sets forth prepayment arrangements, progress-based payment schedules, and quality guarantee provisions. A daily delay fee will apply if the completion timeframe is extended due to the contractor’s responsibility, subject to a cap of 10% of the total contract amount.
GNSR Company, which is 60% owned by Yuexiu Transport Infrastructure Limited, will draw on internal resources and bank loans to fund the project. Any significant upward adjustments to the total contract amount will follow the relevant Listing Rules requirements. The GNSR Expressway is a key transportation artery in Guangzhou, forming part of the Shenyang-Haikou and the Beijing-Hong Kong-Macao Expressways, and it is currently undergoing a reconstruction and expansion project (the “GNSR Expressway R&E Project”).
Since Chengtai Transportation is indirectly wholly owned by Guangzhou Communications Investment Group Co., Ltd., which holds a 30% stake in GNSR Company, the transaction qualifies as a connected transaction under Chapter 14A of the Listing Rules. The highest applicable percentage ratios exceed 1% but are less than 5%. The agreement has been approved by the board and confirmed by independent non-executive directors as fair and reasonable, normal commercial terms, and in the interests of shareholders. Thus, it is subject only to reporting and announcement requirements and is exempt from circular and independent shareholders’ approval obligations.
The company notes that directors have no material interest in this connected transaction. A further announcement will be made once the mechanical and electrical engineering construction agreement is formally executed.