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

Recently, a reporter 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 Shandong Province Investment Project Online Approval and Supervision Platform

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

Bay Area Development manages multiple highways in the Greater Bay Area

According to data, Shandong Expressway mainly engages in investment and operation of transportation infrastructure, as well as equity investments in related upstream and downstream industries of the highway industry chain. By 2025, the total length of road and bridge assets managed by the company is 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 holding subsidiary of Shen高速, which operates the Guangshen Yangtze River Highway Shenzhen section and holds a 51% stake in the project. Its other main assets include 45% equity in Guangzhou-Shenzhen-Zhuhai Expressway Co., Ltd. (mainly involved in investment, construction, and management of the Guangzhou to Shenzhen section of the Beijing-Hong Kong-Macau Expressway), 50% in Guangdong Guangzhu West Line Expressway Co., Ltd. (mainly involved in 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 shareholders was 468 million yuan, a year-on-year increase of 1.44%.

Bay Area Development stated that the overall operation of its three highways remains stable. The partial diversion impact on Guangshen Highway and Guangzhou-Zhuhai West Line Expressway has weakened since the second half of 2025; the Guangshen Yangtze River Highway (Shenzhen section) benefited from the opening of its Phase II project, the opening of the Shenzhong Passage, the end of freight toll adjustments starting January 2025, and the opening of Mawan Tunnel, leading to a significant increase in traffic flow and toll revenue year-on-year. The company is confident about the future development of Guangshen Highway, Guangzhou-Zhuhai West Line Expressway, and Guangshen Yangtze River Highway (Shenzhen section).

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

Shandong Expressway previously held shares in Yue Expressway A

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

In July 2020, its wholly owned subsidiary, Shandong Expressway Investment Development Co., Ltd. (hereinafter referred to as Shandong Investment), transferred 9.68% of Yue Expressway A’s shares through an agreement, acquiring this stake 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 Expressway A, accounted for by the equity method, was 68.7095 million yuan, 165 million yuan, 123 million yuan, 164 million yuan, 151 million yuan, and 136 million yuan, totaling approximately 808 million yuan.

On November 28, 2025, Shandong Expressway announced that Shandong Investment planned to transfer its 9.68% stake in Yue Expressway A 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 shares involved in the transaction had completed transfer.