CTF SERVICES (00659) plans to sell 100% equity of Hunan CTF SERVICES Highway Co., Ltd. for RMB 1.61 billion.

CTF SERVICES (00659) announced that on May 13, 2026, its indirectly wholly-owned subsidiary CTF SERVICES Investment Limited intends to sell 60% and 40% of the equity of Hunan CTF SERVICES Highway Limited Company to Shanghai Infrastructure Construction Development (Group) Co., Ltd. and Shanghai City Construction (Guangdong) Construction Development Co., Ltd. respectively, for a total consideration of approximately RMB 1.61 billion. After the completion of the sale, the existing bank loans of the target company will remain unpaid and will continue to be borne by the target company. As of the date of this announcement, the outstanding principal amount of the bank loans is approximately RMB 2.11 billion. It is reported that the target company is mainly engaged in toll road operations, including but not limited to toll collection services for highways, highway operation management, road operation, management and maintenance, as well as investment in transportation, infrastructure, and environmental pollution control projects. Under a concession agreement entered into with the relevant Chinese government authorities in Hunan Province, it has been operating the Changsha-Liuyang expressway project. The project is located in Hunan Province and is a dual carriageway expressway approximately 72.4 kilometers long connecting Changsha and Liuyang. The announcement stated that the expected sale will improve the group's overall balance sheet and provide greater financial flexibility for the group in implementing its growth strategy.