Plans to Acquire 8.7% Stake in Bay Area Development - Is Shandong High Speed Returning to the Greater Bay Area Expressway Market?

Recently, reporters from Daily Economic News found on the Shandong Province Investment Project Online Approval and Supervision Platform that Shandong Expressway (SH600350, stock price 10.38 yuan, market value 50.183 billion yuan) is planning to acquire an 8.7% stake in Bay Area Development (HK00737), held by Shen高速 (SH600548). However, as of March 19, 2026, the website no longer displays related information.

Image source: Screenshot of the Shandong Province Investment Project Online Approval and Supervision Platform

On March 19, the reporter verified with multiple related companies, but most declined to comment or did not respond. Industry insiders told the reporter that this acquisition is still in the planning stage, and the information appearing on the website may only indicate project approval; subsequent actions remain to be seen.

According to data, Shandong Expressway mainly engages in investment and operation of transportation infrastructure, as well as equity investments in upstream and downstream industries of the highway industry chain. By 2025, the company’s managed road and bridge assets total approximately 2,913 kilometers.

In its 2025 semi-annual report, Shandong Expressway stated that the company actively explores market-oriented highway investment and construction projects, mainly acquiring operational projects that are already open to traffic outside Shandong Province, and building regional development platforms outside the province.

Bay Area Development is a subsidiary controlled by Shen高速, which operates the Shenzhen section of the Guangshen-Yangtze River Highway and holds a 51% stake in the project. Its other main assets include 45% equity in Guangzhou-Shenzhen-Zhuhai Expressway Co., Ltd. (primarily involved in the investment, construction, and management of the Guangzhou to Shenzhen section of the Jinggang-Ao Expressway), 50% in Guangdong Guangzhu West Line Expressway Co., Ltd. (mainly involved in the investment, construction, and management of the Guangzhou-Zhuhai West Line Expressway), and 15% in Guangzhou Zhen Tong Industrial Development Co., Ltd. (currently developing the Park Shangcheng project in Zengcheng District, Guangzhou).

On March 18, 2026, Bay Area Development released its annual performance report, showing that in 2025, revenue was 786 million yuan; net profit attributable to the parent was 468 million yuan, a year-on-year increase of 1.44%.

Bay Area Development stated that its three highways generally maintained stable operations. The impact of diversion on Guangshen Expressway and Guangzhou-Zhuhai West Line Expressway lessened in the second half of 2025; the Guangshen-Yangtze River Highway (Shenzhen section) benefited from the opening of its second phase, the opening of the Shenzhen-Zhongshan Cross-sea Channel, the end of freight toll adjustments starting January 2025, and the opening of Mawan Tunnel, resulting in a significant increase in traffic flow and toll revenue year-on-year. The company is confident about the future development of Guangshen Expressway, Guangzhou-Zhuhai West Line Expressway, and Guangshen-Yangtze River Highway (Shenzhen section).

To understand Shandong Expressway’s acquisition intentions toward Bay Area Development, Daily Economic News reporters recently contacted Shandong Expressway, Shen高速, and Bay Area Development via phone calls and interview requests, but as of press time, no effective response has been received.

In fact, Shandong Expressway previously held shares in Yue高速A (SZ000429).

In July 2020, Shandong Expressway’s wholly owned subsidiary, Shandong Expressway Investment Development Co., Ltd. (hereinafter referred to as Shandong Investment), transferred 9.68% of Yue高速A’s shares through an agreement, acquiring them for 1.348 billion yuan, which brought good returns to Shandong Expressway.

From 2020 to the first three quarters of 2025, the long-term equity investment income from Shandong Expressway’s holdings in Yue高速A, accounted for by the equity method, was approximately 68.71 million yuan, 165 million yuan, 123 million yuan, 164 million yuan, 151 million yuan, and 136 million yuan, totaling about 808 million yuan.

On November 28, 2025, Shandong Expressway announced that Shandong Investment planned to transfer 9.68% of Yue高速A’s shares for 2.435 billion yuan through a private agreement, with Shandong Tonghui Capital Investment Group (hereinafter referred to as Tonghui Group) as the transferee. Since Tonghui Group is a controlling subsidiary of the controlling shareholder of Shandong Expressway, this transaction constitutes a related-party transaction. In December of the same year, the involved shares were transferred and registered.

Cover image source: Daily Economic News Media Library