Yuexiu Transport buys Shandong expressway stake for 1.15 bn yuan

Yuexiu Transport Infrastructure Limited will acquire 85% equity interests in Shandong Qinbin Expressway Construction Co. Ltd., which operates a section of the Qinbin Expressway in Shandong Province, for 1,153.50 million yuan. The acquisition, formalized on December 3, 2025, is considered a discloseable and connected transaction, requiring independent shareholders' approval due to the vendor being the ultimate controlling shareholder.

The target company's principal business involves holding the concession right and operating the target expressway, with toll collection periods extending to November 2045 and January 2047 for different sections. This acquisition is projected to extend the group's weighted average remaining concession period by approximately 0.8 year. The target company reported revenue of 752.50 million yuan for 2024 and was profitable for the year ended December 31, 2024, and the eight months ended August 31, 2025, with profits after taxation of 281,271 thousand yuan and 266,883 thousand yuan, respectively.

The acquisition consideration represents a discount of approximately 3.86% to the appraised market value of the target equities (1,199.79 million yuan), based on a discounted cash flow valuation. The company intends to finance the acquisition using internal resources.