Hong Kong, 23 Sep 2026—GUANGDONG INV (Guangdong Investment Limited) announced that its 60%-owned subsidiary Guangzhou Nansha GDH Water Co., Ltd. (“Nansha Water”) has executed a three-year water-supply agreement with Guangdong Yuehai Pearl River Delta Water Supply Co., Ltd. (“Pearl River Delta Water Supply”), an associate of the company’s controlling shareholder, Guangdong Holdings.
Transaction structure and duration • Agreement date: 23 Sep 2026 • Term: 1 Oct 2026–30 Sep 2029 • Scope: Pearl River Delta Water Supply will deliver raw water to Nansha Water, which will process and distribute tap water across Nansha District, Guangzhou.
Pricing mechanism • Unit price: RMB0.20 per cubic metre (inclusive of tax), identical to the rate previously paid by Nansha Water to government authorities. • Billing: Monthly, based on volumes jointly confirmed by the Nansha District Water Supply and Water Conservation Affairs Centre, Nansha Water, and Pearl River Delta Water Supply. Payment is due within 20 working days of invoice receipt.
Financial caps The board set maximum payment caps (“New Caps”) for the contract period: • 1 Oct 2026–31 Dec 2026: RMB12.00 million • FY 2027: RMB48.00 million • FY 2028: RMB49.00 million • 1 Jan 2029–30 Sep 2029: RMB38.00 million Aggregate cap: RMB147.00 million.
Regulatory classification Because Pearl River Delta Water Supply is 34% controlled by Guangdong Holdings, the deal constitutes a continuing connected transaction under Chapter 14A of the Hong Kong Listing Rules. All percentage ratios are below 5% but exceed 0.1%, triggering disclosure, reporting and annual review requirements while exempting the transaction from independent shareholders’ approval (Rule 14A.76(2)).
Rationale Government planning mandates that Nansha Water switch its raw-water source from the Beijiang River to the Pearl River Delta Water Resources Allocation Project, which Pearl River Delta Water Supply builds and operates. The agreement secures a stable supply at the same unit price, ensuring uninterrupted water provision to industrial and residential users in Nansha District.
Internal controls Half-yearly reviews, invoice verification, utilisation monitoring (with a 90% alert threshold), and segregation of staff between the two counterparties have been instituted to ensure compliance and pricing fairness. Independent non-executive directors and external auditors will conduct annual reviews of the arrangement and cap utilisation.
No director was required to abstain from the board vote, and the board—including independent non-executive directors—concluded that the terms are fair, reasonable, and in the ordinary course of business.
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