Guangdong expressway to receive funds after highway management shift

Guangdong Provincial Expressway Development (SZSE:000429) announced it will receive funds from the government following the government's decision to take over management of the Guangzhou-Foshan Expressway. The compensation covers operating and maintenance expenses previously paid by Guangzhou-Foshan Expressway Co., Ltd. (Guangfo), a subsidiary of Guangdong Provincial Expressway Development. The funds will be disbursed after an audit and settlement process. The company holds a 75% stake in Guangfo, which will reverse previously provisioned bad debt expenses. The financial impact is still under evaluation and is subject to the final audit amount. The company assured investors it will comply with all procedures during the transfer of the expressway.