Yuexiu Transport proposes to acquire 55% equity interests in Henan Yuexiu Pinglin Expressway Company

Further enhance the Company's earnings per share and maintain long-term financial stability

HONG KONG SAR — Media OutReach Newswire — 9 October 2024 — Yuexiu Transport Infrastructure Limited («Yuexiu Transport» or the «Company»; stock code: 01052.HK) announced today that a wholly-owned subsidiary of the Company has entered into an agreement to acquire 55% equity interests in the target company which holds the toll collection rights of Henan Yuexiu Pinglin Expressway Company Limited (the «Target Company») from Guangzhou Yue Xiu Holdings Limited («Yue Xiu Group»), the controlling shareholder of the Company, for a total cash consideration of approximately RMB758.45 million. The acquisition is subject to approval by independent shareholders.

The Henan Pinglin Expressway, located in the core development area of the Zhongyuan city cluster, has a toll mileage of 106.45 km. It is an important component of the G36 Nanjing-Luoyang Expressway, one of the 18 east-west trunk lines of the national «71118» expressway network, and also one of the main logistics roads connecting the northwestern China and coastal region in southeastern China. The expressway has been in operation for over 18 years since it commenced operation in 2006, with a mature and stable surrounding expressway network.

Given its geographical advantage, Yuexiu Transport believes that the Henan Pinglin Expressway will continue to benefit from the national «Rise of Central China» regional development plan. The Company is optimistic about the long-term economic development in Central China, and the acquisition of the Henan Pinglin Expressway aligns with the Company's strategy to expand its business footprint in the region and will help the Company further seize opportunities from the «Rise of Central China» plan. Additionally, as the Henan Pinglin Expressway is near the Weixu Expressway and the Lanwei Expressway, which are operated by the Company, a unified operation and management and a district management model would enable to achieve economies of scale and enhance management efficiency.

The Target Company is in good financial position and recorded a profit of RMB119.12 million in the first year