Sichuan Expressway Company Limited (00107) disclosed that it has entered into a new Road Network Operation Guarantee Services Agreement with Sichuan Intelligent Transportation System Management Co., Ltd. (“Intelligent Transportation Company”), a subsidiary of its controlling shareholder, Shudao Investment Group. The agreement covers the period from January 1, 2026 to December 31, 2028.
According to the announcement, the service fee under the agreement will be charged at 4‰ of classified toll fees or not more than RMB35 million per year, whichever is lower. The Company stated that this arrangement aims to ensure effective collection, maintenance, and security of toll revenue data across its expressway network. Historical payments for similar services did not exceed the existing annual cap.
The agreement qualifies as a continuing connected transaction under Chapter 14A of the Listing Rules, triggered by the shareholding relationship between Sichuan Expressway and Shudao Investment. As certain percentage ratios are above 0.1% but below 5%, the agreement is subject to reporting, announcement, and annual review requirements while being exempt from independent shareholders’ approval.
Sichuan Expressway highlighted that the terms of the agreement were reached after arm’s length negotiations, and that the pricing is in line with market practices in Sichuan Province. The board added that the agreement is expected to maintain operational stability and efficiency in toll collection systems.
Sichuan Intelligent Transportation System Management Co., Ltd. is principally engaged in internet information services, system integration, and network security services, while Sichuan Expressway focuses on investment, construction, operation, and management of expressway projects in Sichuan Province, as well as green energy investment and resources development along the routes.
