Sichuan Expressway Company Limited has released a circular outlining plans to issue up to 432.55 million new A shares to no more than 35 specific investors, aiming to raise up to RMB 3.18 billion. The placement will be conducted under a refreshed general mandate that also permits the Board to issue up to 179.06 million new H shares—each representing 20% of the respective share class outstanding as at 18 June 2026.

Key deal terms include: • Pricing floor: not lower than 80% of the average A-share trading price over the 20 trading days preceding the first day of the issuance period and not below the latest audited net asset value per share. • Lock-up: six months for all subscribers. • Timetable: issuance to follow SSE review and CSRC registration; shareholder approval will be sought at the fourth EGM on 21 July 2026.

Proceeds allocation • RMB 2.30 billion to fund the G5 Beijing–Kunming Expressway Chengdu-Ya’an Section expansion, a 159.28 km project budgeted at RMB 27.89 billion. • RMB 880.00 million to repay interest-bearing debt.

Corporate actions • Proposed change of company name from “Sichuan Expressway Company Limited” to “Sichuan Expressway Group Company Limited,” coupled with related amendments to its Articles of Association. • Introduction of a three-year (2026-2028) shareholder return plan: subject to profit and cash-flow conditions, annual cash dividends will not be less than 60% of consolidated net profit.

Governance and safeguards • Directors, senior management and the controlling shareholder have committed to measures aimed at mitigating earnings-per-share dilution, including linking remuneration and potential equity incentives to post-placement return targets. • Proceeds will be deposited in dedicated accounts, monitored by sponsor and supervisory banks to ensure usage strictly aligns with approved purposes.

Assuming full subscription, post-issue share capital would rise from 3.06 billion to 3.49 billion shares. The issuance, company name change, and related mandates remain subject to shareholder approval and subsequent regulatory clearance.