YUEXIUTRANSPORT (01052) plans to invest 261 million yuan in establishing a joint venture company with Xinjiang Lixin Energy.

YUEXIU TRANSPORT (01052) announced on June 11, 2026 (after trading hours) that Guangzhou Yuexiu, Guangzhou Yuexiu Capital Holdings Group, and Yuexiu New Energy (a wholly-owned subsidiary of the company) have entered into a cooperation agreement to establish a joint venture company. Guangzhou Yuexiu, Guangzhou Yuexiu Capital Holdings Group, and Yuexiu New Energy will each contribute RMB 348 million, RMB 261 million, and RMB 261 million in cash, respectively, representing 40%, 30%, and 30% of the registered capital of the joint venture company. Upon establishment, the joint venture company plans to engage in new energy business, focusing on quality investments in wind power, new energy storage, and other infrastructure assets in line with the national "dual carbon" strategy and the deployment of a new power system. Yuexiu New Energy will use its own funds to contribute to the registered capital of the joint venture company. The joint venture company will not become a subsidiary of the company, and its financial performance will not be consolidated into the company's financial statements. In accordance with the "Fifteenth Five-Year Plan for National Economic and Social Development of the People's Republic of China" released by the central government, new energy has been identified as one of the key strategic emerging industries for development. The country has emphasized the acceleration of building a new energy system, increasing the share of new energy supply, promoting the development of new energy storage, and constructing a new power system. Therefore, the company has identified new energy and new infrastructure as one of the key strategic directions for development during the Fifteenth Five-Year Plan period. With the strategic theme of "Growing Big and New" established in its strategic planning, the company is actively seeking opportunities to expand its economy, smart transportation, artificial intelligence, green energy, and other new infrastructure businesses. The establishment of the joint venture company is seen as a prudent and appropriate way for the company to enter the new energy sector and marks a significant step in expanding its business beyond highway operations. The joint venture company, as the core platform for Guangzhou Yuexiu and the company to develop new energy business, will integrate the resources, investment capabilities, financing costs, and operational management advantages of the three parties to achieve synergies between industry and capital and optimize the layout of high-quality new energy assets. After its establishment, the joint venture company plans to engage in new energy business, including investments in clean energy infrastructure such as wind power, new energy storage, new power system construction projects, integrated source-grid-load-storage projects, and equity investments in new energy manufacturers and technology providers. Initially, the joint venture company will focus on investments in high-quality wind power, new energy storage, and other infrastructure assets. It will reassess and adjust its specific investment direction based on market conditions and actual business operations to achieve its objectives. Under the backdrop of the country's implementation of the "dual carbon" strategy, the prospects for the new energy sector are promising. Through investments in high-quality new energy projects via the joint venture company, the company can seize the opportunities in the new energy industry, optimize its asset portfolio, enhance its sustainability, expand its profit sources, and create long-term returns for shareholders. The establishment of the joint venture company and its planned business scope do not compete with the existing business of Guangzhou Yuexiu Capital Holdings Group. Based on the above, the directors (including independent non-executive directors) believe that the terms of the cooperation agreement are fair, reasonable, and in line with common commercial terms. Even though the transactions proposed under the cooperation agreement are not part of the company's daily business processes, the establishment of the joint venture company is considered to be in the overall interest of the company and its shareholders.