Sichuan Expressway Company Limited (00107) reported a connected transaction through its wholly owned subsidiary, Sichuan Chengle Expressway Company Limited (Chengle Company), involving settlement of a RMB6,572,546.25 compensation fee with Chengdu West Rim Expressway Company. The agreement, signed on November 10, 2025, aims to facilitate temporary road occupation necessary for expanding the G0512 Chengdu-Leshan Expressway. The compensation fee references official provincial documents and standards for road occupation and property loss.

Chengdu West Rim Expressway Company is an indirect non-wholly owned subsidiary of Shudao Investment, which is Sichuan Expressway’s controlling shareholder. According to relevant listing rules, this arrangement constitutes a connected transaction because it involves parties associated with the controlling shareholder. The agreement, when aggregated with previous transactions involving related compensation for the Chengle Expressway Expansion Construction Project (totaling RMB12,235,196 within the last 12 months), surpasses 0.1% but remains below 5% of applicable percentage ratios. Consequently, reporting and announcement requirements apply, and the transaction is exempt from independent shareholders’ approval.

The Chengle Expressway Expansion Construction Project spans approximately 136.124 kilometers, includes multiple sections (new double-track, expanded original route, and a six-lane section through Leshan), and involves an estimated total investment of RMB25.1 billion. The new interchange over the Chengdu Ring Expressway requires temporary occupation of various lanes and structures, prompting the compensation arrangement. The transaction received Board approval, with two non-executive Directors abstaining due to positions held at Shudao Investment. The Board deems the terms fair, reasonable, and in the ordinary course of business.