DALIPAL HLDG (01921) subsidiary entered into an EPC contract with MCC Jingcheng Engineering Technology.

DALIPAL HLDG (01921) announced that on February 1, 2024, Dalipu Special Pipe (an indirect wholly-owned subsidiary of the Company) as the principal, entered into an EPC contract with contractor Metallurgical Jingcheng Engineering Technology Co., Ltd. as the contractor. Under this agreement, Dalipu Special Pipe agreed to appoint the contractor to provide EPC services for the project, with a total contract amount of RMB 882 million. Dalipu Special Pipe agreed to appoint the contractor to provide EPC services for the project. The scope of EPC services under the EPC contract includes design, equipment procurement, installation, commissioning, and material supply; construction, installation, and commissioning of production facilities and utilities; equipment testing; completion acceptance; training; data delivery; and quality assurance. The engineering carried out by the contractor should comply with national and industry regulations, standards, and regulations, as well as the quality requirements specified in the EPC contract. The contractor should ensure that the engineering construction meets the standards specified in the EPC contract, including but not limited to production capacity, efficiency, quality, energy consumption, safety, environmental protection, and occupational health standards. The contractor is also responsible for the overall integrity of the engineering construction, including but not limited to equipment, facilities, material supply, installation, commissioning, safety, construction period, quality, and maintenance. According to the EPC contract, the construction period of the project is 450 days from the approval of construction permits by the relevant government department. The purpose of entering into the EPC contract is to develop the project. The project involves the construction and development of a high-end pipe production facility for oil drilling and energy equipment in the Bohai New Area of Cangzhou City. The Company believes that the development of the project aligns with the Group's business strategy. Upon completion of the project, the Group will have a new production line for high-end pipe products, which will help expand the Group's production capacity. The EPC contract will enable the Group to further expand its business scale through the construction of new projects, thereby enhancing shareholder returns.