Core Viewpoint - The company is responding to sanctions imposed by the UK government and the US Treasury Department on Lukoil, indicating a proactive approach to compliance and risk management [1][2]. Group 1: Sanctions and Compliance - On October 15, 2025, the UK government imposed restrictive measures on Lukoil [1]. - On October 22, 2025, the US Treasury's Office of Foreign Assets Control listed Lukoil and entities owning 50% or more of it on the Specially Designated Nationals list [1]. - The company has initiated an internal assessment to evaluate any potential impacts from these sanctions [1]. Group 2: Contractual Implications - Existing procurement and construction contracts with Lukoil's wholly-owned subsidiary will be terminated by November 21, 2025 [1]. - The total receivables from these contracts amount to approximately RMB 8.3 billion [1]. - Revenue and gross profit from these contracts accounted for about 4% and 7.5% of the company's revenue and gross profit for the six months ending June 30, 2025, respectively [1]. Group 3: Business Operations - The company anticipates that the termination of the contract will not have a significant adverse impact on its business operations or financial condition [1]. - Other business operations remain normal and unaffected by the sanctions [1]. Group 4: Ongoing Monitoring - The company will continue to monitor and follow up on the developments related to the sanctions and assess their potential impact [2].
惠生工程(02236)与卢克石油附属签订的现有采购与施工合同将于11月21日前终止