WUHAN YOUJI (02881.HK): Malaysia Plant Phase-1 Civil Works Contract Up to RM85 Million

NewTimeSpace News: On 23 September 2026 (after trading hours), Wuhan Youji Holdings Limited (stock code: 02881) announced that its wholly-owned subsidiary Benzoplus Chemicals (M) Sdn. Bhd. (as employer) entered into a construction contract with CCIE Engineering (M) Sdn. Bhd. (as contractor), pursuant to which the contractor agreed to undertake the phase-1 civil works project for the Company's Malaysia plant. 

The project is located within the Tanjung Langsat Industrial Complex in Pasir Gudang, Johor, Malaysia, with a total gross floor area of approximately 20,000 square metres, covering civil, fitting-out and installation works for the administrative building, production workshop, warehouse, tank farm and external works, and assisting with applications, approvals, inspections, certification, handover and obtaining the CCC (Certificate of Completion and Compliance). The project excludes process engineering, equipment installation, gas engineering, high-voltage power supply works, sewage treatment works and fire protection works. To the best of the Directors' knowledge, information and belief after making all reasonable enquiries, the contractor and its ultimate beneficial owner are independent third parties. 

In terms of consideration, the provisional contract sum is RM74,000,000 (approximately RMB121,670,503), being the winning bid price, and the maximum contract sum is RM85,000,000 (approximately RMB139,756,659, inclusive of applicable sales and service tax and other taxes payable by the employer), being the aggregate consideration payable or to be borne capped at the maximum contract sum. The above RMB equivalents are calculated at an exchange rate of approximately RM1 to RMB1.6442 as at the date of this announcement. The maximum contract sum exceeds the provisional contract sum by approximately RM11,000,000 (about 14.9%), intended to provide a contingency for re-measurement of actual quantities, design changes, employer's requirements, suspensions and other approved variations or claims under the construction contract. The tender adopted an invited-tender approach; of six invited bidders, three passed the preliminary review, with valid bid prices ranging from RM72,760,055.78 to RM76,316,233.96, and the contractor, having submitted a bid of RM74,000,000, ranked first in the overall evaluation and was selected as the winning bidder. The Directors consider that the provisional and maximum contract sums were determined on normal commercial terms, are fair and reasonable and in the interests of the Company and its shareholders. 

As one or more applicable percentage ratios under Rule 14.07 of the Listing Rules exceed 5% but are less than 25%, the construction contract constitutes a discloseable transaction of the Company and is subject to the reporting and announcement requirements under Chapter 14 of the Listing Rules, but does not require shareholders' approval.

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