On July 3, Zhongchen Electric Co., Ltd. announced that it had disclosed the "Announcement on Receiving the Notification of Winning the Bid for the First Joint Procurement of 10kV Power Cable Agreement Inventory in the East China Region of 2025 by State Grid Corporation of China" (Announcement No.: 2025-032) on June 17, 2025. Recently, the company signed "Purchase Contracts" with the Material Branch of State Grid Jiangsu Electric Power Co., Ltd. and the Material Branch of State Grid Fujian Electric Power Co., Ltd. respectively.
The total contract amount for the company this time is 246,442,333.13 yuan, accounting for approximately 7.98% of the company's audited operating revenue in 2024. If the project is implemented smoothly, it will have a positive impact on the company's future operating performance. The company will recognize revenue in the corresponding accounting period in accordance with the contract requirements and revenue recognition principles (subject to the data audited by the accounting firm). The performance of the above contracts will not have a significant impact on the company's business independence, and the company's main business will not become dependent on the contracting parties due to the performance of the contracts.