Shang Hai Zheng Quan Bao·2025-10-22 19:30Core Viewpoint - Sichuan Chengyu Highway Co., Ltd. has signed a sand and gravel procurement contract with an affiliated party, involving a total transaction amount not exceeding RMB 100 million, to supply materials for the Tianmei Le Expressway project [2][4][12]. Summary by Sections 1. Overview of the Related Transaction - The contract was signed on October 22, 2025, between Sichuan Chengyu Xing Shu Supply Chain Management Co., Ltd. and Sichuan Jiaojian Lingzhou Construction Co., Ltd. for the Tianmei Le Expressway project, with an estimated total transaction amount of up to RMB 100 million (including tax) [2][4]. - The transaction constitutes a related party transaction but does not qualify as a major asset restructuring under relevant regulations [2][4]. 2. Approval Process - The transaction was approved by the company's eighth board of directors and the supervisory board, with related directors abstaining from voting [3][12]. - The company followed the necessary procedures for temporary disclosure due to the competitive nature of the bidding process [3][5]. 3. Impact on the Company - The related transaction is essential for the normal business operations of the group and does not harm the interests of the company or its shareholders, particularly minority shareholders [3][12]. - The company does not have significant reliance on the related party, ensuring that the transaction aligns with the interests of all shareholders [3][12]. 4. Details of the Agreement - The agreement includes a preliminary estimate of 400,000 tons of sand and gravel, with the final quantity subject to acceptance by the purchaser [8][9]. - The pricing is fixed and includes all associated costs, with payments made after quality acceptance of the supplied materials [9][10]. 5. Financial Background of the Related Party - Sichuan Jiaojian Lingzhou Construction Co., Ltd. has total assets of RMB 299.31 million and a net asset of RMB 109.28 million as of 2024, indicating a stable financial position [6]. - The company is controlled by Sichuan Transportation Construction Group, which is also affiliated with Sichuan Chengyu [6].