BAY AREA DEV (00737.HK): Signs Six Shenzhen-Section Works Contracts Totalling ~RMB 6.66bn; Major Transactions

NewTimeSpace News: On 19 October 2026, Shenzhen Investment Holdings Bay Area Development Company Limited (the "Company") announced that, following public tender and bidding procedures conducted through the Guangzhou Public Resources Trading Centre, Guangzhou-Shenzhen-Zhuhai Company entered into the Shenzhen-section works contracts (sections TJ1 and TJ3 to TJ7) with the successful bidders after trading hours on 19 October 2026, with an aggregate contract sum of approximately RMB 6,664 million.

The announcement disclosed the sections and contract sums: section TJ1 (CCCC First Harbour Engineering) approximately RMB 1,590,521,663; section TJ3 (CCCC Road and Bridge Construction) approximately RMB 783,399,039; section TJ4 (China Railway Tunnel Group) approximately RMB 805,426,943; section TJ5 (China Railway Major Bridge Engineering Group) approximately RMB 770,440,866; section TJ6 (China Railway 12th Bureau Group) approximately RMB 1,287,055,298; and section TJ7 (CCCC Second Highway Engineering) approximately RMB 1,426,804,888. The works cover subgrade, bridges and culverts, tunnels, interchanges, reserved embedments, tree transplanting and precast beam slabs for the Guangzhou-Shenzhen section of the Beijing-Hong Kong-Macao Expressway expansion project (Shenzhen section).

The Company stated that, as sections TJ1, TJ3 and TJ7 were entered into on the same day with connected counterparties, the three contracts are aggregated under Rules 14.22 and 14.23(1), and as one or more applicable percentage ratios exceed 25% but all are below 100%, they constitute a major transaction; sections TJ4 and TJ5 are likewise aggregated and constitute a major transaction; and section TJ6, with one or more applicable percentage ratios exceeding 5% but all below 25%, constitutes a discloseable transaction. The Company has obtained written approval from controlling shareholder Shenzhen Investment Holdings Infrastructure (holding 2,464,657,077 shares, about 73.98% of issued capital) under Rule 14.44, so no general meeting is required; a circular must be despatched within 15 business days after the announcement, expected on or before 9 November 2026. The Shenzhen-section expansion follows the existing alignment from the Dongbao River Bridge at the Dongguan-Shenzhen boundary to the Huanggang Toll Station in Shenzhen, with a route length of about 47.07 km and a total investment of about RMB 21,433 million, of which 25% is self-funded by Guangzhou-Shenzhen-Zhuhai Company and the remainder raised through bank loans and government funding.