Sichuan Express (00107) plans to issue up to 433 million A-shares.

SICHUAN EXPRESS (00107) has announced that in order to timely seize market opportunities and enhance the flexibility of related work, the board of directors has decided to propose for consideration and approval at an extraordinary general meeting the issuance of general authorization for the issuance of shares. According to the general authorization, based on market conditions and the company's needs, the board of directors may issue additional A shares and/or H shares in the company separately or simultaneously. The total number of additional A shares and/or H shares to be issued shall not exceed 20% of the number of A shares and/or H shares already issued by the company when the relevant resolution is approved at the extraordinary general meeting. On June 18, 2026, the board of directors approved the issuance of A shares to specific entities under the general authorization. Accordingly, the company will issue not more than 433 million new shares to a maximum of 35 specific entities, and it is expected to raise funds of no more than RMB 3.18 billion. The issuance of A shares to specific entities under the general authorization shall only be carried out after obtaining approval from the shareholders at the extraordinary general meeting through a special resolution. After the completion of this issuance, the company's total assets and net assets will increase accordingly, and the scale of liabilities will decrease, which will help enhance the company's risk resistance and continuous operating capabilities. It will also provide financial support for the growth of the core business and business strategic layout, further enhance the company's core competitiveness, and gain advantage in market competition. In addition, the funds raised from this issuance will be used for the implementation of the Chengdu-Ya'an Expressway expansion project, which will help the company continue to control high-quality expressway assets and promote the coordinated development of businesses relying on expressway projects such as comprehensive energy and road development economy. It will have a positive impact on the company's cash flow, profits, and asset size, aligning with the company's development strategy and overall interests of shareholders.