STEC subsidiary to co-invest in Shanghai land development with related party

Shanghai Tunnel Engineering Co., Ltd. (STEC) announced that its wholly-owned subsidiary, Shanghai Ruiteng International Property Co., Ltd. (Ruiteng Property), will co-invest in land parcels in Putuo District. Ruiteng Property and related party Shanghai Urban Construction Property Development Co., Ltd. (Urban Construction Property) will establish Shanghai Ruizhen Huicheng Property Co., Ltd. (Ruizhen Huicheng) as the project company.

Ruizhen Huicheng will have a registered capital of RMB 2.5 bn, with Ruiteng Property contributing RMB 1.225 bn (49% stake) and Urban Construction Property contributing RMB 1.275 bn (51% stake). The total investment for the Putuo District project is RMB 7.71416 bn, with Ruiteng Property investing RMB 3.77994 bn (49%) and Urban Construction Property investing RMB 3.93422 bn (51%).

This transaction constitutes a related party transaction as STEC and Urban Construction Property are both controlled by Shanghai Urban Construction (Group) Co., Ltd. The transaction exceeds 5% of STEC's latest audited net assets and will be exempted from shareholder approval. The Putuo District project includes two plots designated for ordinary commercial housing, with a total land area of 26,423.41 m² and a starting bid price of RMB 4.646 bn.