Jiangsu Expressway Company Limited (stock code: 00177) recently approved a pro rata capital injection into its controlled subsidiary, Jiangsu Danjin Expressway Co., Ltd. The subsidiary is responsible for constructing and operating the Danyang to Jintan Section of the Fuli Expressway (referred to as the 「Danjin Project」).

According to the announcement, the board of directors approved a total capital increase of RMB3,534,265,840 to meet construction funding requirements. Of this amount, Jiangsu Expressway intends to contribute RMB2,636,555,840 in cash, while Changzhou Transportation Holdings Group Co., Ltd. will provide the remaining RMB897,710,000. Following the completion of the capital injection, Danjin Company’s registered capital is expected to rise from RMB1,704,000,000 to RMB5,238,265,840.

The shareholding ratios will remain unchanged, leaving Jiangsu Expressway at 74.5998% and Changzhou Transportation Holdings at 25.4002%. The transaction does not require further approval at a general meeting and does not affect the scope of Jiangsu Expressway’s consolidated financial statements.

Jiangsu Expressway’s board highlighted that this arrangement aims to ensure the smooth progress of the Danjin Project. Danjin Company, officially established in November 2024, had commenced initial project construction and reported total assets of RMB2,489,010,000 and a net profit of RMB-66,000 during the first three quarters of 2025.

Under the Hong Kong Listing Rules, this move constitutes a discloseable transaction for Jiangsu Expressway but remains exempt from additional shareholder approval. The transaction is not deemed a material asset restructuring and is likewise exempt from connected transaction requirements due to the proportional capital contribution by both shareholders.