CHENGDU EXPWAY (01785) announced that on April 20, 2026, its subsidiary, Energy Development Company, as a limited partner, entered into a partnership agreement with Chengdu JiaoTou Excellence Fund Company (as the general partner), Chengdu JiaoTou Capital Company (as a limited partner), and Sichuan Hangdian Wei (as a limited partner). According to the agreement, the Chengdu Energy Storage Industry Chain Equity Investment Fund Partnership will be established with a total committed capital of 1 billion yuan. Energy Development Company, as a limited partner, will contribute 150 million yuan, representing a 15% stake. Upon its establishment, the fund will not become a subsidiary of CHENGDU EXPWAY and will not be included in the company's consolidated financial statements.
The fund's investment focus will primarily be on energy storage assets in the Chengdu region, including projects in scenarios such as supplementary charging+, transportation hubs, and industrial parks. Before the fund completes its private fund filing or if idle capital exists, Chengdu JiaoTou Excellence Fund Company may, for cash management purposes, decide to invest the fund's cash assets in instruments such as bank demand deposits, government bonds, central bank bills, and money market funds, as recognized by the China Securities Regulatory Commission. Apart from the specified investment scope, the fund is prohibited from engaging in any other investment activities without the unanimous consent of all partners.
In response to multiple national policies favorable to the energy storage sector, such as the "Action Plan for Large-Scale Construction of New Energy Storage (2025-2027)" and the "Action Plan for High-Quality Development of the New Energy Storage Manufacturing Industry," Energy Development Company is actively advancing its layout in new energy and energy storage-related businesses. It is focusing on developing diverse application scenarios like "supplementary charging+" microgrids, transportation hub microgrids, and industrial park microgrids, while continuously improving its distributed energy and smart energy management systems.
Establishing this fund will help Energy Development Company leverage a professional fund platform to further enhance its capital operation capabilities and resource allocation efficiency in the energy storage field. It aims to fully utilize the fund's leverage effect to amplify the investment efficacy of limited capital, while containing cost risks within the contribution amount. Through the setup of the fund's investment decision committee, investment risks will be effectively controlled, promoting the scaled development of related businesses.
The fund will invest around the energy storage industry chain in the Chengdu area. Through fund investments and the subsequent establishment of Special Purpose Vehicles (SPVs) to implement specific projects, it will accelerate the progress of energy storage project deployment. This will assist Energy Development Company in swiftly completing the strategic layout of core segments of the industry chain. Project operational data and asset management will be integrated into Energy Development Company's management platform, fostering business synergy and capability enhancement in areas such as electricity market trading, demand-side response, and smart energy management. This will strengthen the group's core competitiveness in business segments like microgrids and smart energy.
Furthermore, the establishment of this fund is conducive to promoting deep integration between capital and industry, enhancing understanding of the latest developments in the new energy sector, diversifying investment risks, and identifying potential strategic partners to seize future development opportunities. Leveraging the professional investment management capabilities of the fund manager, along with the industrial technology and scenario resource advantages of the partners, the Board believes that the group's investment in the fund can construct an investment layout covering the energy storage industry chain, thereby supporting the sustained development and strategic transformation of Energy Development Company's new energy business.
Additionally, the fund is projected to achieve an annualized investment return of approximately 8.5%. Sichuan Hangdian Wei will provide a deficiency guarantee for the SPV's operational income at a rate of 6% per annum, further securing the realization of the fund's investment returns. Therefore, the Board considers that the fund offers potential returns exceeding fixed income, effectively utilizing the group's existing financial resources and competitive advantages, improving capital allocation efficiency, and enhancing capital returns.
From a long-term perspective, this investment is beneficial for the gradual optimization and upgrade of the company's business structure and will strengthen its capacity for sustainable operation. With risks under control, the company expects to enjoy returns from the fund in the future, which is advantageous for safeguarding shareholder interests.