Shenzhen International Holdings Limited (Shenzhen International) announced that its wholly owned subsidiary, Longshen International Real Estate (Shenzhen) Limited, has signed an engineering, procurement and construction (EPC) contract with China Construction Eighth Engineering Division Corp., Ltd. (China Construction No. 8) for Phase 1 of the Reserved Land of the South China Transformation Project. The transaction, valued at RMB683.28 million, qualifies as a discloseable transaction under Hong Kong Listing Rules, with the highest applicable percentage ratio exceeding 5% but below 25%, and thus requires announcement but not shareholder approval.
Key contract terms • Scope: Construction of 126,520 sq m of gross floor area—including 120,540 sq m of residential units and a 5,700 sq m nursery—on a 21,967 sq m site in Longhua District, Shenzhen. • Construction period: Not to exceed 900 calendar days from the commencement notice. • Price structure: 91.8% of the RMB683.28 million contract price will be settled in cash, while 8.2% (RMB56.00 million) will be discharged by transferring bare-shell residential units (the Offsetting Properties) in Zhengding Intelligent Hub Project (Phase I). • Payment terms: 50% of the RMB23.55 million safety and civilised construction fee is payable upfront, with the remainder linked to project milestones. Monthly progress payments will cover 80% of certified work; 85% of the adjusted contract sum is due upon completion and acceptance, 97% upon final audit, and the 3% balance retained as a quality-assurance fund for the 24-month defect-liability period. • Price adjustment clauses cover changes in work scope, labour and material costs, fuel price fluctuations, and regulatory amendments, all requiring written confirmation by both parties.
Financing and accounting impact Cash outlays will be funded through internal resources and/or bank borrowings. The Offsetting Properties, carried at approximately RMB53.57 million as of 31 July 2026, will be transferred at a valuation of RMB56.00 million determined by an independent valuer using the market approach. Any difference—after taxes—will be recognised as gain or loss upon completion; management does not expect a material impact.
Strategic rationale The contract accelerates development of Phase 1 of the South China Transformation Project, a key component of Shenzhen International’s logistics-linked property development strategy in the Guangdong-Hong Kong-Macao Greater Bay Area. Securing China Construction No. 8—an experienced state-owned contractor—aims to ensure timely delivery, enhance project quality and support the company’s cash-flow cycle by partially offsetting payments with property units.