The source text repeats the same passage twice; the following is a single English translation.

On the evening of September 9, Dalian Huarui Heavy Industry Group Co., Ltd. (hereinafter “Dalian Heavy Industry”) released an announcement stating that the Company plans to use its own funds or self-raised funds to invest in and build the Port Machinery Relocation and Intelligent Upgrade Project.

According to the announcement, the project is located at Lüshun New Port, Jiangxi Subdistrict, Lüshunkou District, Dalian. It has a planned land area of approximately 480,000 square meters and a construction period of approximately two years. It consists of three parts: land acquisition, wharf acquisition, and renovation and construction. The land and wharf assets to be acquired will be obtained through public auction, and the specific amounts will be separately submitted for deliberation and disclosed based on the transferor’s subsequent public listing information. The renovation and construction cost is preliminarily estimated at RMB 2.639 billion, including civil engineering and construction costs, equipment procurement costs, and initial working capital, etc.; the specific amount shall be subject to the actual amount incurred.

To ensure the smooth implementation of the project and achieve separate accounting for the port machinery product business, Dalian Heavy Industry plans to invest RMB 1.1 billion of its own funds to establish a wholly owned subsidiary in Lüshunkou District—Dalian Huarui Port Machinery Co., Ltd. (tentative name, subject to industrial and commercial approval)—responsible for the project’s subsequent management and operation.

Regarding the acquisition of wharf and sea area assets, the Company plans to sign a Project Investment Agreement with the land transferor, the Lüshunkou District People’s Government, intending to purchase approximately 480,000 square meters of land use rights. It also plans to sign an Asset Acquisition Letter of Intent with the wharf asset transferor, Dalian Yihang Harbor Construction Co., Ltd., to acquire, through a conditional listing and an integrated transaction model of “existing assets + renovation works,” the wharf assets of Berths No. 0–5 of the Lüshun New Port Expansion Project and the supporting harbor basin sea area use rights held by it.

Under the agreement, the three assets—the harbor basin, the berths, and the land behind the berths—shall be transacted as a bundled whole. All three assets must be transacted together; if any one of them is not successfully transacted, the relevant agreements shall become invalid or automatically terminate. The Company undertakes to participate in the bidding and to make at least one bid at the listing reserve price during the listing procedure. If the Company ultimately fails to win the listing and acquire the target assets, such as the wharf and harbor basin held by Dalian Yihang Harbor, the Company has the right to unilaterally terminate the Project Investment Agreement and the State-owned Construction Land Use Right Grant Contract without bearing any liability for breach of contract. At the same time, the land transferor undertakes to refund all transaction payments already made by the Company.

Regarding wharf renovation and title processing, the wharf asset transferor must complete all wharf renovation works and complete completion acceptance within 540 calendar days after the signing of the agreement, and must complete the title approval procedures involved in the transacted assets within 90 calendar days after completion acceptance, including but not limited to the change of the shoreline use entity and the change of sea area use rights. Under the Project Investment Agreement, the Lüshunkou District People’s Government also undertakes to complete the project land and various municipal supporting facilities, including delivery of cleared land, road supporting facilities, power supporting facilities, integrated pipeline network and communications supporting facilities, channel dredging, and culvert backfilling, etc.

Regarding project positioning, Dalian Heavy Industry stated that the project targets large high-end port handling equipment such as quay cranes, rail-mounted gantry cranes, ship loaders, and ship unloaders. Relying on the shoreline and wharf resources of Lüshun New Port, by building an “intelligent, green, and efficient” excellence-level smart factory for port equipment manufacturing, equipped with large-tonnage shipment berths and intelligent production lines for pretreatment, intelligent blanking, and intelligent riveting and welding, it will achieve a systematic leap in manufacturing capacity, production efficiency, and large complete-machine delivery capability, enter the industry’s first tier, and continuously maintain a leading edge.

After the project is fully completed and reaches designed production capacity, it will form large-scale and intelligent manufacturing capacity for large port machinery products matching order growth, effectively break the capacity bottleneck caused by the existing production base having reached its annual output value ceiling, seize market opportunities brought by the expansion of the global port machinery market and the concentrated replacement of existing equipment, and further enhance the market share and profitability of the Company’s port machinery business.

The announcement also noted that the project still faces risks such as wharf upgrading and transactions, land transactions, supporting facilities and construction, failure to pass review by state-owned asset management authorities, and investment returns falling short of expectations. Among them, some berths are planned to be upgraded to 30,000-DWT or 50,000-DWT general-purpose berths; however, due to limitations on shoreline length and wharf water depth, there is a possibility that they may not fully meet the specifications. Both the wharf berths and land use rights must be obtained through public auction or listing transfer, and there is uncertainty as to whether the Company can win the bid, the final transaction price, and the timing of acquisition.