Gelonghui December 4丨Yuexiutransport (01052.HK) announced that on December 4, 2024, the transferor, Xiangtong Co., Ltd. (a wholly-owned subsidiary of the company), and the buyer entered into a property transaction agreement, whereby the transferor agreed to sell and the buyer agreed to purchase the sale rights (i.e., 60% equity of the target company Tianjin Jinfuhighway Co., Ltd.), for a price of 0.191 billion yuan.
The target company is mainly engaged in the construction, operation, management, and maintenance of the Jinxiong Expressway. As of the announcement date, the target company is held 60% and 40% by the transferor and the buyer respectively.
Since the establishment of the target company, it has been engaged in the construction, operation, management, and maintenance of the Jinxiong Expressway. Considering that there are six years left in the tolling period, and that extensions require regulatory approval and will incur additional capital expenditure, the company has assessed its strategy and expects that the sale will immediately generate cash inflow, anticipating that the completion of the transaction will enhance the company's net profitability.
