Honglu Steel subsidiary lands CNY 457.6m contract

Anhui Honglu Steel Construction Group (SZSE:002541) announced that its subsidiary, Anhui Hongxiang Building Materials, has signed a contract with China Seventeenth Metallurgical Corporation for the "Zhenshi Green High-end Nickel-Chromium New Material Intelligent Manufacturing Project." The contract involves the procurement of steel structures, with an estimated quantity of 91,425 tons and a provisional value of CNY 457,572,025.60. The payment terms include a 10% advance payment, monthly progress payments of 98% of the value of completed work, and a 2% quality guarantee deposit. The company states that the project is expected to positively impact its 2025 revenue and profits, representing approximately 2.13% of the company's audited 2024 revenue. The company cautions investors about potential risks associated with the project, including changes in regulations, design modifications, and project schedule adjustments.