Zhonghua Geotechnical unit wins project, involving related party

China Zhonghua Geotechnical Engineering Group (SZSE:002542) announced that its wholly-owned subsidiary, Beijing Changdao Municipal Engineering Group, signed a construction sub-contract with Chengdu Construction Engineering No.7, a subsidiary of the company's controlling shareholder, Chengdu Xingcheng Investment Group. This constitutes a related-party transaction. The sub-contract involves construction for the Three Ring Road upgrade project. The estimated contract value is approximately RMB 12.396 million, representing 0.49% of the company's 2023 audited revenue. The project is expected to positively impact the company's future operating results. According to the announcement, this is a normal business activity for Beijing Changdao and will not affect the company's independence. Year-to-date related transactions with Chengdu Xingcheng Group total RMB 1.126 million.