China Merchants Expressway adjusts finance, guarantees, and donates

China Merchants Expressway Network & Technology Holdings has approved an adjustment to its financial services agreement with China Merchants Group Finance Company Limited, increasing the daily maximum deposit balance to 100 bn yuan and maintaining the loan balance limit at 100 bn yuan for 2026. This move, aimed at diversifying funding and optimizing costs, follows approval from the board and independent directors. The company's controlling shareholder and actual controller, China Merchants Group Co., Ltd., is also the actual controller of China Merchants Group Finance Company Limited, making this a connected transaction.

In a separate development, China Merchants Expressway's wholly-owned subsidiary, China Merchants Chongqing Communication Research and Design Institute Co., Ltd. (China Merchants Design), will provide a joint and several liability guarantee of up to 35 m yuan for a syndicate loan of 11.64 bn yuan sought by its associate, Chongqing Kaiwanliang Expressway Co., Ltd. This guarantee is proportional to China Merchants Design's 0.5% equity stake in Chongqing Kaiwanliang Expressway Co., Ltd.

Additionally, China Merchants Expressway is donating 15 m yuan in proprietary funds to the China Merchants Charitable Foundation for public welfare activities such as poverty relief, medical assistance, education, and disaster relief. The China Merchants Charitable Foundation shares the same controlling shareholder as China Merchants Expressway, constituting another connected transaction.