Yuexiutransport (01052.HK) announced earlier that its wholly-owned subsidiary will acquire 55% equity interest in Henan Yuexiupinglin Expressway from its controlling shareholder Yuexiu Group for a total cash consideration of approximately 0.758 billion RMB. Liu Chunli, the Director of Capital Operations at Yuexiutransport, revealed that the acquisition plan will be carried out with the company's own funds, without borrowing from banks or financing from shareholders. This will not increase the company's financial burden while enhancing shareholder returns. She mentioned that the compound annual growth rate of revenue for Henan Yuexiupinglin Expressway was about 7.05% from 2010 to 2019, and about 4.22% from 2010 to 2023. It is expected that the compound annual growth rate of revenue for 2024 to 2032 (average) will be 1.19%, with an estimated ROI of about 9.2%.

Pan Yongqiang, Executive Director and Deputy General Manager of Yuexiutransport, stated that there are signs of moderate improvement in overall traffic volume for its expressway projects in September and October this year. As for the series of comprehensive policies from the central government, a stabilizing and rising trend in China's overall economy can be expected.

Pan Yongqiang also mentioned that Yuexiutransport currently has no plans to venture abroad in the short term, as the company is still focusing on its core businesses and immediate opportunities. He believes that expanding overseas requires a certain level of research and preparation, including considerations for local policy stability, exchange rates, and other factors. He revealed that there is a possibility of venturing abroad in the future.

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