YUEXIUTRANSPORT (01052) announced on December 3, 2025, that the seller (an associate of the company) and the buyer (a wholly-owned subsidiary) entered into a transfer agreement. The seller conditionally agreed to sell, and the buyer conditionally agreed to acquire, an 85% equity interest in Shandong Qinbin Expressway for a total consideration of RMB1.1535 billion. The completion is subject to the fulfillment (or waiver, if applicable) of the conditions precedent set out in the agreement. Post-completion, the company will indirectly hold an 85% stake in the target company, which will become an indirect non-wholly-owned subsidiary, with its financial results consolidated into the group's statements.
Qinbin Expressway is the most efficient coastal corridor in the Bohai Rim region, with the target section in Shandong Province forming a critical part of the G1 Beijing-Harbin Expressway network. Located in China's eastern coastal area, Shandong is a major economic, demographic, and industrial hub. The acquisition aligns with YUEXIUTRANSPORT's regional expansion strategy, enabling it to capitalize on the economic growth of the eastern coast. The expressway serves a thriving chemical industry and multiple seaports, with freight traffic accounting for nearly 50% of total traffic in 2024.
The target road is expected to benefit from deepening economic cooperation in the Bohai Rim and stronger ties between Shandong and the Beijing-Tianjin-Hebei region, with freight traffic projected to remain stable. The Chengkou-Zhanhua section expires in 2045, while the Luji-Chengkou segment (including the Zhangweixin River Bridge) expires in 2047. Post-acquisition, the group’s weighted average remaining concession period will extend by approximately 0.8 years, enhancing long-term sustainability.
In 2024, the target company generated revenue of approximately RMB752.5 million. The acquisition will diversify the group’s revenue streams, and as the target was profitable in both 2024 and the first eight months of 2025, YUEXIUTRANSPORT expects continued profit contributions. The deal will also offset impacts from the divestment of a 60% stake in Tianjin Jinxiong Expressway and the expiration of Guangzhou North Ring Road’s toll period in 2024, mitigating revenue and profit pressures from network diversions, concession expirations, and Guangzhou North Second Ring Road’s reconstruction.
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