YUEXIU TRANSPORT (01052) plans to acquire 85% equity of Shandong Qinbin Expressway for 11.535 billion yuan.

YUEXIU TRANSPORT (01052) announced that on December 3, 2025, the transferor (related parties of the company) and the transferee (a wholly-owned subsidiary of the company) entered into the transfer agreement, whereby the transferor conditionally agreed to sell and the transferee conditionally agreed to purchase the target equity (i.e. 85% equity of Shandong Qinbin Expressway Company), with a total transaction price of RMB 1.1535 billion. Delivery must be subject to the satisfaction (or waiver, if applicable) of the conditions precedent specified in the transfer agreement. After delivery, the company will indirectly hold 85% equity interest in the target company. After delivery, the target company will become an indirect non-wholly owned subsidiary of the company and its financial performance will be consolidated into the group's financial statements. Qinbin Expressway is the fastest coastal expressway in the Bohai Sea region, with the target highway being a part of it in Shandong province and an important component of the national expressway network Jingha Expressway (G1) link line. The target highway is located in the eastern coastal region of China, and Shandong province, where it is located, is a major province in terms of economy, population, and industry in China. This acquisition is in line with the company's regional expansion strategy and can benefit from the economic development along the eastern coast. The target highway has developed chemical industry along the route, numerous seaports, significant freight transportation functions, and a high proportion of truck traffic (nearly 50% of traffic in 2024). It is expected to continue to benefit from deeper economic cooperation in the Bohai Sea region and further strengthening of economic ties between Shandong and the Beijing-Tianjin-Hebei region. The concession period of the target highway section from Chengkou to Zhanhua expires in 2045, while the section from Lujie boundary to Chengkou (including Zhangwei Xinhe Bridge) expires in 2047. After this acquisition is completed, the weighted average remaining concession period of the expressways controlled by the group will be extended by approximately 0.8 years, further enhancing the group's sustainable development capability. The target company's revenue in the full year of 2024 was approximately RMB 7.525 billion. After this acquisition, it will expand the group's sources of revenue, and as the target company was profitable in the year ended December 31, 2024, and the eight months ended August 31, 2025, the company believes that the target company can continue to contribute profits to the group after delivery. It will also provide beneficial supplementation to the group's asset portfolio after the completion of the sale of 60% equity interest in Tianjin Jingxiong Expressway and the expiration of the concession period of the Guangzhou North Ring Expressway tolls in 2024, helping to alleviate the impact on income and profits from the diversion of traffic due to network separation or the gradual expiration of concession periods and the construction of expansion of the Guangzhou North Second Ring Expressway.