20-F: Zhejiang Yunding Technology Enters Construction Contract for Yunji Sharing Industrial Center Project

Zhejiang Yunding Technology Information Co., Ltd. contracts Zhejiang Southeast Grid Co., Ltd. for the construction of the Yunji Sharing Industrial Center project in Hangzhou, with a total construction area of 51,924 square meters.

Summary

• Zhejiang Yunding Technology Information Co., Ltd. has contracted Zhejiang Southeast Grid Co., Ltd. for the construction of the Hangzhou Government Land Reserve Out [2024] No. 53 Plot Yunji Sharing Industrial Center Project.
• The project is located at the intersection of Jianshe Fourth Road and Leda Road, Xiaoshan District, Hangzhou City, Zhejiang Province.
• The total construction area is 51,924 square meters, including two office buildings (with hotels), supporting commercial facilities, and underground garages.
• The contract construction period is planned to commence on November 10, 2024, and be completed by October 31, 2026, totaling 720 days.
• The contract price, excluding tax, is RMB 210,543,530.28, with a VAT rate of 9% and a total price including tax of RMB 229,492,448.00.
• A provisional amount of RMB 85,260,000.00 is included for subcontracted works such as curtain walls, public area finishing, landscape, elevators, air conditioning, and major municipal works.
• The project quality must meet design and specification requirements, complying with national and local regulations.
• The contractor is responsible for site management, coordination, and civilized construction management.

Sentiment

Score: 7

Explanation: The document is a standard construction contract, so the sentiment is neutral. It outlines the terms and conditions of the project, with a balance of responsibilities and risks for both parties.

Positives

• The contract clearly defines the scope of work, responsibilities, and timelines for both parties.
• A provisional amount is allocated for subcontracted works, providing flexibility for unforeseen expenses.
• The contract includes clauses for quality standards, payment terms, and dispute resolution.

Negatives

• The contract includes risks for the contractor, such as price changes for materials and machinery during the construction period.
• The employer has the right to adjust the scope of work according to actual needs, and the contractor must comply.
• The contractor must unconditionally implement sporadic projects attached to the main body or otherwise entrusted by the employer, and the costs have been comprehensively considered by the contractor in the quotation.

Risks

• The contractor bears the risk of price changes for materials and machinery during the construction period, except for explicitly restricted items.
• The contractor is responsible for protecting completed works before project completion acceptance, bearing repair costs for any damage.
• The contractor must comply with changes to the scope of work by the employer.
• The contractor is responsible for the accuracy of the account information.
• The contractor must unconditionally implement sporadic projects attached to the main body or otherwise entrusted by the employer, and the costs have been comprehensively considered by the contractor in the quotation.

Future Outlook

The employer has the right to adjust the scope of work according to actual needs, and the contractor must comply.

Management Comments

• Party A and Party B have reached an agreement on Party B's contracting of the project construction and hereby conclude this contract for mutual compliance.
• The Contractor must unconditionally implement sporadic projects attached to the main body or otherwise entrusted by the Employer, and the costs have been comprehensively considered by the Contractor in the quotation.
• The Contractor shall not request additional cost compensation from the Employer.

Industry Context

This announcement reflects the ongoing construction and development activities within the industrial sector in China, particularly in the Zhejiang province.

Comparison to Industry Standards

• The contract includes standard clauses and conditions commonly found in construction agreements.
• The allocation of risks and responsibilities between the employer and contractor is typical for such projects.
• The contract's financial terms and quality standards are aligned with industry norms for similar construction projects in China.

Stakeholder Impact

• Shareholders: The project's success could positively impact the company's financial performance.
• Employees: The project will provide employment opportunities for construction workers.
• Customers: The project will provide new facilities for the company's operations.
• Suppliers: The project will generate demand for construction materials and services.
• Creditors: The project's financial viability will impact the company's ability to meet its obligations.

Next Steps

• The contractor will commence construction on the project.
• The employer will oversee the project and make payments according to the contract terms.
• Both parties will adhere to the contract terms and resolve any disputes through negotiation or legal means.

Key Dates

Keywords

construction contract, Zhejiang Yunding Technology, Zhejiang Southeast Grid, Yunji Sharing Industrial Center, construction, Hangzhou, project