Jiangsu Expressway Announces Proposed RMB500 Million Investment in Zijin Trust

Key Highlights of the Announcement

• Jiangsu Expressway Company Limited (the Company) has announced a proposed capital increase investment of RMB500 million in Zijin Trust Co., Ltd. (Zijin Trust).
• This investment aims to protect the Company’s shareholder rights, optimize asset allocation, and maintain investment value in Zijin Trust.
• The transaction is subject to approval from the State-owned Assets Supervision and Administration Commission and the National Financial Regulatory Administration Jiangsu Bureau. The completion of the transaction is uncertain at this stage.
• This move will not trigger a shareholders’ meeting as it falls within the board’s authorized scope, but regulatory approvals remain a key hurdle.
• The Company’s shareholding in Zijin Trust will remain at 20% post-investment, maintaining its strategic influence.

Investment Details

• The capital increase is part of a larger fundraising effort by Zijin Trust, totaling RMB2.5 billion, with RMB728.85 million added to registered capital and the rest to capital reserves.
• Existing shareholders are participating in the capital increase on a pro-rata basis, except for Sanpower Group Co., Ltd., whose portion will be covered by the major shareholder, Nanjing Zijin Investment Group Co., Ltd.
• Shareholding structure changes:
  • Nanjing Zijin Investment Group: increases from 50.67% to 51.37%
  • Sumitomo Mitsui Trust Bank: remains at 20%
  • Jiangsu Expressway: remains at 20%
  • Nanjing New Industrial Investment Group: remains at 5.5%
  • Sanpower Group: decreases from 3.83% to 3.13%
• Financial Impact: The Company will use self-owned funds for the investment, with no expected material impact on its assets, profit and loss statement, or scope of consolidated financial statements.
• The investment does not constitute a major asset restructuring nor a connected transaction under prevailing regulations.

About Zijin Trust Co., Ltd.

• Zijin Trust is a limited liability company based in Nanjing, China, with a registered capital set to increase from RMB3.27 billion to RMB4.0 billion post-investment.
• The company operates in fund trusts, chattel and real estate trusts, securities trusts, financial management, consulting, and other related financial services.
• Recent Financial Performance:
  • Total assets (31 Dec 2025, unaudited): RMB13.9 billion
  • Net profit (2025, unaudited): RMB1.11 billion
  • Operating income (2025, unaudited): RMB1.8 billion
  • Gearing ratio: 20.6%
• The latest appraisal values the company’s net assets at approximately RMB3.43 per share of registered capital, representing a 3.26% appreciation over the audited book value.

Strategic Rationale and Potential Impact

• This investment will consolidate Jiangsu Expressway’s strategic position in Zijin Trust, strengthen its governance role, and further integrate financial services with its transportation business.
• The move is expected to enhance the Company’s comprehensive income potential and create positive interaction between financial and core business returns.
• The Company emphasizes that there will be no negative impact on the interests of shareholders or the Company itself as a result of this transaction.

Risks and Shareholder Considerations

• The transaction is subject to regulatory approvals and may not be completed. Investors are urged to pay attention to subsequent announcements and be aware of uncertainties and associated risks.
• As the capital increase agreement has yet to be formally signed, the terms, rights, and obligations remain subject to further negotiation and confirmation.
• The Company will provide timely updates as material developments occur.

Potential Share Price Sensitivity

Investor Takeaway: This significant capital injection into Zijin Trust could be viewed positively by the market, as it reinforces Jiangsu Expressway’s commitment to diversifying its income base and strengthening its financial sector presence. However, the uncertainty of regulatory approval and pending agreement details introduce execution risk. Investors should closely monitor further disclosures for updates that could impact the Company’s share price.

Disclaimer: The above article is based on the official announcement of Jiangsu Expressway Company Limited as of 30 April 2026. The information provided herein is for informational purposes only and does not constitute investment advice. Completion of the proposed transaction is subject to regulatory approvals and further negotiation, and the final outcome may differ from the current proposal. Investors should exercise caution and consult their financial advisors before making investment decisions related to the Company.

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