CIL GROUP (01719.HK): Wholly-owned subsidiary to contribute RMB 8 million to port and shipping development fund with total commitments of RMB 300 million
NewTimeSpace News: On 7 September 2026, China Infrastructure & Logistics Group Ltd. (stock code: 01719) announced that its wholly-owned subsidiary Wuhan Zhongji General Port Development Co., Ltd. and Changjiang Venture Capital Fund Management Co., Ltd. , Hubei Port and Shipping Development Private Equity Investment Fund Partnership (Limited Partnership) and Wuhan Port and Shipping Construction Group Co., Ltd. had entered into a limited partnership agreement to establish a fund with total capital commitments of RMB 300 million (equivalent to approximately HKD 351 million). Wuhan Zhongji, as a limited partner, will contribute RMB 8 million to the fund, representing approximately 2.66% of the total capital commitments. The fund, provisionally named Hubei Provincial Port and Shipping Development No.1 Fund Partnership (Limited Partnership), is a limited partnership established under PRC law, and its name is subject to approval and registration by the PRC market regulatory authority.
The fund has a term of five years from its establishment, comprising a three-year investment period and a two-year exit period, which may be extended upon unanimous consent of all partners. The fund will invest in transportation and waterway construction projects in Hubei Province. Changjiang Venture Capital will act as the executive partner and fund manager, charging an annual management fee of 0.2% of the fund's raised capital. Each partner's capital contribution is payable in one lump sum, and the group intends to fund its commitment from internal resources.
The announcement noted that Changjiang Venture Capital, Hubei Ganghang and Wuhan Ganghang are all associates of the controlling shareholder Hubei Port Group and connected persons of the company, making the limited partnership agreement a connected transaction for the company. As the highest applicable percentage ratio of the group's capital commitment under the agreement exceeds 0.1% but is below 5%, the transaction is subject to the reporting and announcement requirements under Chapter 14A of the Listing Rules, but is exempt from the circular and independent shareholders' approval requirements. Following the group's contribution, the fund will not become a subsidiary of the company, and its financial results will not be consolidated into the group's accounts.
The group's principal business is the investment, development, operation and management of container and other ports. The company said the establishment of the fund offers an opportunity to generate investment returns from its idle funds: Changjiang Venture Capital directly manages 22 funds with a total value of approximately RMB 38.8 billion and its fund management platform has participated in establishing over 200 funds with an aggregate scale exceeding RMB 700 billion; and the fund's proposed investment target, Hubei Hanjiang , has been profitable since its establishment, recording revenue of over RMB 432.4 million and net profit of over RMB 110.1 million for the year ended 31 December 2025.
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