Qinglong Pipes secures $40m supply contract

Ningxia Qinglong Pipes Industry Group (SZSE:002457) has announced the signing of a sales contract worth RMB 276.99 million (approximately $40 million USD) with China Construction Seventh Engineering Bureau. Under the agreement, Qinglong Pipes will supply JPCCP and PCCP pipes, as well as steel fittings, for the Kaifeng urban-rural integrated water supply project. The contract, finalized on February 11, 2025, stipulates that delivery schedules will be based on the buyer's needs and will occur between 2025 and 2026. This contract represents 13.44% of the company's audited revenue from 2023. While Qinglong Pipes anticipates the deal will positively impact its financial performance, the company cautions of potential risks including raw material price fluctuations, increased labor costs, and project modifications.