Shang Hai Zheng Quan Bao·2025-10-31 08:07Core Viewpoint - The company has signed two land use rights contracts related to the construction of the new Guangzhou (Xintang) to Shanwei railway project, which is a key construction project in Guangdong Province as part of the national railway network planning. The transactions are classified as related party transactions but do not constitute a major asset restructuring as per regulations [19][20][58]. Financial Data - The company will receive a total of approximately RMB 140.55 million (including tax) for the land use rights for the new Xintang station and RMB 208.94 million (including tax) for the land use rights for the parallel section of the railway [19][58]. - The expected annual increase in non-operating pre-tax profit from these transactions is approximately RMB 3 million [58]. Board Meeting and Resolutions - The company's board of directors held a meeting on October 30, 2025, where all proposed resolutions were passed unanimously, including the approval of the quarterly report and the land use rights contracts [13][59]. - The board also approved the nomination of Li Danjiang as a candidate for the board of directors, which will be submitted for shareholder vote [61][62]. Related Party Transactions - The transactions involve Guangdong Guangshan Railway Co., Ltd. and the Guangzhou Command of China Railway Guangzhou Group, both of which are related parties to the company [19][20]. - The contracts specify the land areas and usage terms, with one contract for 50 years and another for approximately 30.43 years [21][51]. Impact on Company Operations - The transactions are expected to have a positive impact on the company's asset status and cash flow, with a net income of approximately RMB 68.38 million upon completion [58]. - The company assures that these transactions will not affect its independence or harm the interests of minority shareholders [58].