CTF SERVICES (00659.HK): Sells Three Guangdong Toll Road Stakes for RMB 1.9794 Billion, Expects RMB 170 Million Net Loss

NewTimeSpace News: On 10 November 2026 (after trading hours), CTF Services Limited (stock code: 00659) announced that its indirect wholly-owned subsidiaries, as sellers, entered into three equity transfer agreements to dispose of 100% of Manjue Investments Limited, 25% of Jingzhu Expressway Guangzhou-Zhuhai Section Co., Ltd. and 25% of Zhaoqing Yuezhao Highway Co., Ltd., for total consideration of about RMB 1.9794 billion.

The announcement disclosed that the Manjue disposal carries a cash consideration of RMB 542 million; Manjue is engaged in investment holding and indirectly holds about 38.5% of the effective equity in Huishen (Yantian) Expressway Huizhou Co., Ltd., which operates the Huizhou section of the Shenzhen-Huizhou expressway in the PRC. The Jingzhu disposal carries a cash consideration of about RMB 747.4 million for a 25% stake in the operator of the Guangzhou-Zhuhai section of the Jingzhu expressway; the buyer already holds the remaining 75% and will hold the whole company after completion. The Yuezhao disposal carries a cash consideration of RMB 690 million for a 25% stake in the operator of the Guangzhou-Zhaoqing expressway. Completion of each agreement is not conditional on the others.

The Company stated that the considerations were determined through arm's length negotiations on normal commercial terms by reference mainly to the agreed preliminary appraised values from valuations prepared by the buyers for state-owned asset filing purposes, adjusted for pre-completion profit distributions. After completion the Group will hold no equity in the target companies. The toll road projects have delivered an overall positive return through past dividends and disposal proceeds, with an annualised return of about 15%, and dividends plus disposal proceeds together amount to about three times the Group's invested capital.

The Company stated that, despite the positive return, it expects to record an estimated net loss after tax of about RMB 170 million in aggregate for the financial year ending 30 June 2027, subject to completion and the auditor's final review. On the Listing Rules, each disposal has a highest applicable percentage ratio below 5% and none is a discloseable transaction on its own; as the disposals form part of the Group's exit from its Guangdong toll road portfolio and were negotiated within 12 months with entities ultimately controlled by the same controlling shareholder, the Guangdong Provincial People's Government State-owned Assets Supervision and Administration Commission (Guangdong SASAC), the Company aggregated them under Rules 14.22 and 14.23(1), producing a highest ratio of 5% or more but below 25%, so the disposals are a discloseable transaction subject to reporting and announcement but exempt from circular and shareholders' approval requirements. The Company cautioned that each disposal remains conditional and may not proceed.