Benzoplus Chemicals (M) Sdn. Bhd., a wholly owned subsidiary of Wuhan Youji Holdings Limited (Wuhan Youji), has signed a construction contract with CCIE Engineering (M) Sdn. Bhd. for the Phase I civil works of the group’s new Malaysia production base.
The provisional contract sum is RM74.00 million (RMB121.67 million), with a maximum cap of RM85.00 million (RMB139.76 million) inclusive of Malaysia’s 6% sales and service tax. The agreement was reached on 23 September 2026 after an invited tender that drew six bids; CCIE Engineering submitted the winning price and ranked first in overall technical and commercial evaluation.
Scope of work covers civil, fit-out and installation works for an administration building, production workshops, warehouses, a tank farm and external areas on a 12.85-acre site in Pasir Gudang, Johor. Total gross floor area is about 20,000 sq m. Process equipment, natural-gas, high-voltage power, wastewater treatment and fire-protection works are excluded but the contractor must coordinate with specialist providers.
Key milestones are: • Site entry by 23 September 2026 • Construction start in October 2026 • Civil-works completion by 30 June 2027 • Certificate of Completion and Compliance (CCC) by 31 December 2027
Liquidated damages for contractor-caused delays accrue at 0.03% of the provisional sum per day, capped at 3.00%. A performance bond of RMB0.50 million must be provided before site entry.
Payment terms include a 10% advance, monthly progress payments equal to 80% of certified work, cumulative payments up to 85% on CCC issuance, 95% on final account settlement, and the remaining 5% three months later against a bank guarantee.
Phase I of the Malaysia factory is planned to accommodate annual capacities of 15,000 tonnes of sodium benzoate and 10,000 tonnes of benzyl alcohol. Wuhan Youji expects the overseas base to diversify production away from Mainland China and mitigate trade-policy risks. Funding will come from internal resources and bank financing.
Under Hong Kong Listing Rule 14.07, the transaction is classified as a discloseable transaction: the relevant percentage ratios exceed 5% but are below 25%, requiring public announcement but not shareholder approval.