Chengdu Road & Bridge (002628.SZ): Receipt of Notice of Termination of Project Contract Performance and Cessation of Construction

NightAirdropper · 2026-03-21T08:06:48+00:00

Chengdu Road and Bridge received a letter from Chuantou Hongge terminating the contracts for two projects, including the Lehuo Tourism Project and seven bundled projects. The Lehuo Tourism Project will no longer be carried out, and some sub-items within the seven bundled projects have also been terminated. The portions that have been completed will be settled in accordance with the contract. The company will continue to communicate with Chuantou Hongge to protect its lawful rights and interests.

NightAirdropper

2026-03-21 08:06:48

Abstract generation in progress

Gelonghui, March 18 — Chengdu Road & Bridge (002628.SZ) announced that the company recently received two letters from Panzhihua ChuanTou HongGe Industrial Co., Ltd. (referred to as “ChuanTou HongGe”), namely a “Contract Termination and Performance Notice” and a “Construction Termination Notice,” regarding two project contracts in which the company, as the lead contractor of the consortium, is involved:

The “Design-Build General Contract for the Two Bundled Projects of Lohas Sightseeing Agriculture Demonstration Park and Central Area Road Construction” (referred to as the “Lohas Sightseeing Project Contract”). This project was signed in March 2022, with a contract duration of 730 calendar days and a contract price of 162 million yuan. Details are disclosed in the company’s March 30, 2022 announcement titled “Notice of Project Bid Winning and Related Party Transactions” (Announcement No.: 2022-021). According to the letter, ChuanTou HongGe has decided to terminate the contract due to its own business reasons, and the project will no longer proceed.
The “Survey, Design, and Construction General Contract for Seven Bundled Projects Including Yanyang River River Management, Sports Park Construction, Phase II of the Western Ring Road, New Roads in the Southern Area, and Sun Lake Park” (referred to as the “Seven Bundled Projects Contract”). This contract was signed in December 2019, with a 36-month duration and an estimated contract price of 2.8 billion yuan. Details are disclosed in the company’s December 4, 2019 announcement titled “Announcement on the Company’s Participation in the Yanyang River River Management, Sports Park Construction, Phase II of the Western Ring Road, New Roads in the Southern Area, Sun Lake Park, and Other Seven Bundled Projects, Survey, Design, and Construction General Contract and Related Transactions” (Announcement No.: 2019-107).

According to the letter: 1. The four sub-projects—Southern Area Road Construction, Sun Lake Park Construction, Hongge Town Environmental Management, and Yanyang River River Management—have completed acceptance and auditing, and will proceed with settlement as per the contract; 2. The other three sub-projects—Sports Park Construction, Hongge Three Towers, and Phase II of the Western Ring Road—were not implemented as scheduled due to business reasons, and the company has decided to terminate construction, with no further implementation.

As of the date of this announcement, ChuanTou HongGe has unilaterally sent a notice to terminate the contracts, and the company has not yet signed a formal termination agreement with ChuanTou HongGe. The specifics are as follows: 1. Regarding the Lohas Sightseeing Project: ChuanTou HongGe has decided to terminate the “Design-Build General Contract for the Two Bundled Projects of Lohas Sightseeing Agriculture Demonstration Park and Central Area Road Construction,” and the Lohas Sightseeing Project will no longer proceed. 2. Regarding the Seven Bundled Projects: ChuanTou HongGe has decided to terminate the construction of the three sub-projects—Sports Park Construction, Hongge Three Towers, and Phase II of the Western Ring Road—under the survey, design, and construction contract, and these will no longer be implemented. The four sub-projects that have completed acceptance and auditing will proceed with settlement as per the contract.

For the four sub-projects among the Seven Bundled Projects that have completed acceptance and auditing, the company has settled the related works according to the contract. As of this announcement, the total recognized revenue is 435.3864 million yuan, with a total received payment of 268.4226 million yuan, and outstanding receivables amounting to 206.1486 million yuan. The company will actively communicate and negotiate with ChuanTou HongGe, urge the progress of project settlement and payment, and effectively safeguard its legal rights through appropriate channels. The contracts for the Lohas Sightseeing Project and the three unimplemented sub-projects of the Seven Bundled Projects have been terminated; no losses have been incurred for unstarted projects. After this termination, the company’s unfinished order amount will decrease.

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