Sichuan Shudao Equipment & Technology (300540.SZ) signs a framework contract for a natural gas liquefaction project, strengthening its advantage in the manufacturing of cryogenic equipment.

Sichuan Shudao Equipment & Technology (300540.SZ) announced that at the 37th meeting of the fourth board of directors held on September 23, 2024, they approved the proposal to sign a major contract for daily operations. The company will sign a "Materials and Services Total Purchase Framework Contract" with Guangdong Longshun Engineering Co., Ltd. (hereinafter referred to as "Longshun Engineering"). The total amount of the framework contract will be determined based on the actual prices of materials and services included in the framework contract and the actual performance, with the final total amount of the actual contract not exceeding RMB 1.5 billion. On the same day, the company signed the "Materials and Services Total Purchase Framework Contract" with Longshun Engineering. After consultation and agreement, both parties agreed that the company will become the total supplier of materials, equipment, work, and services for Guangdong Longshun's natural gas liquefaction project. Based on the principles of voluntariness and mutual benefit, both parties signed this framework contract for the procurement of materials and services for the natural gas liquefaction project through friendly negotiations. The company stated that the signing of this framework contract is a significant breakthrough for the company in the field of LNG equipment, demonstrating the company's comprehensive competitive advantage in the field of cryogenic equipment manufacturing. It will enhance the company's market competitiveness in the cryogenic equipment manufacturing sector, play an important role in boosting market expansion and continuous breakthroughs in related fields in the future. It will also help the company further solidify its core business, align with the company's overall development strategy, and reflect the recognition of the company's brand and market influence by customers.