Sichuan Road & Bridge cuts capital, plans guarantees and M&A

Sichuan Road & Bridge Construction Group Co., Ltd. announced a reduction in its registered capital to 8,695,590,645 yuan from 8,710,039,485 yuan. This adjustment follows the repurchase and cancellation of 14,448,840 restricted incentive shares. Consequently, the company's articles of association will be revised to reflect the new capital structure, including updates to Article 5 (registered capital), Article 18 (share capital reduction details), and Article 19 (total issued shares). The changes will be submitted to shareholders for approval.

Concurrently, the company's board approved a 2026 guarantee plan, anticipating a total guarantee amount of 365.04 bn yuan for its subsidiaries and joint ventures, along with a credit facility of 2,031.90 bn yuan. This extensive plan, which represents 64.46% of the company's latest audited net assets as of September 30, 2025, includes guarantees of 237.28 bn yuan for wholly-owned and controlled subsidiaries and 6.76 bn yuan for associates. The board also passed a proposal for daily related-party transactions for 2026-2028, estimating a total value of 1,235.87 bn yuan across various categories such as goods, services, and financial activities.

These decisions also include the approval of an absorption merger where Sichuan Road & Bridge will absorb its wholly-owned subsidiary, Sichuan Xinshun Building Materials Co., Ltd. The board deemed this an internal equity restructuring that will not materially impact the company’s operations or consolidated financial statements.