Zhejiang Expressway : Interim Report

Deepening innovation and reform in the core business while sustainably developing the securities business

In the first half of 2022, the Group deepened reform and innovation, and accelerated to pursue marketization for the core business. The Group made every effort to cope with the negative impacts caused by the resurgence of epidemic, and committed to ensuring that all projects were implemented. The Group strived to build a renowned brand for expressway operations and services in China by means of technology empowerment, service quality enhancement, and proactive capital operation.

Zheshang Securities, a subsidiary of the Group, actively adjusted its business layout and effectively integrated advantageous resources, which contributed to its operating results outperforming the overall market level. Zheshang Securities actively expanded low-cost financing channels to meet its operational development needs and enhanced the coordination and synergies between each business segment in order to steadily move towards becoming a top-tier securities company in China.

2022

INTERIM REPORT

1. Definition of Terms

1. 2022 Interim Results
2. Business Review

1. Financial Analysis

1. Outlook

1. Disclosure of Interests and Other Matters

1. Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income
2. Condensed Consolidated Statement of Financial Position

1. Condensed Consolidated Statement of Changes in Equity

1. Condensed Consolidated Statement of Cash Flows
2. Notes to Condensed Consolidated Financial Statements

64 Corporate Information

1. Corporate Structure of the Group
2. Financial Highlights
3. Location Map of Expressways in Zhejiang Province

2022 INTERIM REPORT

Definition of Terms

Associate	has the meaning ascribed to it under the Listing Rules
Audit Committee	the audit committee of the Company
Board	the board of directors of the Company
China Merchants	China Merchants Expressway Network & Technology Holdings Co Ltd.
	(招商局公路網絡科技控股股份有限公司), a joint stock limited company
	established in the PRC on December 18, 1993, whose shares are listed on
	the Shenzhen Stock Exchange
Company or Zhejiang Expressway	Zhejiang Expressway Co., Ltd., a joint stock limited company incorporated
	in the PRC with limited liability on March 1, 1997
Communications Group	Zhejiang Communications Investment Group Co., Ltd. (浙江省交通投資集
	團有限公司), a wholly state-owned enterprise established in the PRC, on
	December 29, 2001 and the controlling shareholder of the Company
Controlling Shareholder	has the meaning ascribed to it under the Listing Rules
De'an Co	Deqing County De'an Highway Construction Co., Ltd. (德清縣德安公路
	建設有限責任公司), a 80.1% owned subsidiary of the Company, which is
	established with Zhejiang Hongtu Transportation Construction Company
	(浙江交工宏途交通建設有限公司) for PPP Project in Deqing County
Directors	the directors of the Company
GDP	gross domestic product
Group	the Company and its subsidiaries
H Shares	the overseas listed foreign shares of Rmb1.00 each in the share capital of
	the Company which are primarily listed on the Hong Kong Stock Exchange
	and traded in Hong Kong dollars since May 15, 1997
Hanghui Co	Zhejiang Hanghui Expressway Co., Ltd. (浙江杭徽高速公路有限公司), a
	51% owned subsidiary of the Company
HangNing Co	Zhejiang HangNing Expressway Co., Ltd. (浙江杭寧高速公路有限責任公司),
	a 30% owned associate of the Company, which is established in the PRC
	with limited liability
Huihang Co	Huangshan Yangtze Huihang Expressway Co., Ltd (黃山長江徽杭高速公路
	有限責任公司), a wholly-owned subsidiary of the Company
Hong Kong Stock Exchange	The Stock Exchange of Hong Kong Limited
Jinhua Co	Zhejiang Jinhua Yongjin Expressway Co., Ltd. (浙江金華甬金高速公路有限
	公司), a wholly-owned subsidiary of the Company
Listing Rules	the Rules Governing the Listing of Securities on The Stock Exchange of
	Hong Kong Limited
LongLiLiLong Co	Zhejiang LongLiLiLong Expressway Co., Ltd. (浙江龍麗麗龍高速公路有限公
	司), a wholly-owned subsidiary of the Company
Jiaxing Branch	Jiaxing Branch of Zhejiang LongLiLiLong Expressway Co., Ltd.; Zhejiang
	Jiaxing Expressway Co., Ltd. has been absorbed and merged by
	LongLiLiLong Co., and its main assets and business continued to exist
	under Jiaxing branch
Period	the period from January 1, 2022 to June 30, 2022
PRC	the People's Republic of China

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Definition of Terms

Rmb	Renminbi, the lawful currency of the PRC
SFO	Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong)
Shangsan Co	Zhejiang Shangsan Expressway Co., Ltd. (浙江上三高速公路有限公司), a
	limited liability company established in the PRC on January 1, 1998 which
	is owned as to 73.625% by the Company and 18.375% by China Merchants,
	respectively
Shareholders	the shareholders of the Company
Shengxin Co	Shengxin Expressway Co., Ltd. (浙江紹興嵊新高速公路有限公司), a 50%
	owned joint venture of the Company
Shenjiahuhang Co	Zhejiang Shenjiahuhang Expressway Co., Ltd.(浙江申嘉湖杭高速公路有限
	公司), a wholly-owned subsidiary of the Company
SRCB	Shanghai Rural Commercial Bank Co., Ltd. (上海農村商業銀行股份有限公
	司) a 4.85% owned associate of the Company
Yangtze Financial Leasing	Yangtze United Financial Leasing Co., Ltd. (長江聯合金融租賃有限公司), a
	10.61% owned associate of the Company
Linping Co	Zhejiang Linping Expressway Co., Ltd. (浙江臨平高速公路有限責任公司),
	formerly known as "Zhejiang Yuhang Expressway Co., Ltd." (浙江余杭高速
	公路有限責任公司), a 51% owned subsidiary of the Company
Zhajiasu Co	Jiaxing Zhajiasu Expressway Co., Ltd. (嘉興市乍嘉蘇高速公路有限責任公
	司), a 55% owned subsidiary of the Company
Zhejiang Communications Finance	Zhejiang Communications Investment Group Finance Co., Ltd. (浙江省交通
	投資集團財務有限責任公司), a 20.08% owned associate of the Company
Zheshang Development	Zheshang Development Group Co., Ltd.* (浙商中拓集團股份有限公司), a
	joint stock limited company established in the PRC and a 46.22% owned
	associate of Communications Group
Zheshang Financial	Zhejiang Zheshang Financial Holding Co., Ltd.* (浙江浙商金控有限公司), is
	a wholly-owned subsidiary of the Communications Group, was established
	under the laws of the PRC with limited liability in August 2018
Zhejiang Grand Hotel	Zhejiang Grand Hotel Limited (浙江大酒店有限公司), a wholly-owned
	subsidiary of the Company
Zhejiang Hongtu	Zhejiang Hongtu Transportation Construction Company (浙江交工宏途交
	通建設有限公司), a limited liability company incorporated in the PRC and
	non-wholly owned by Communications Group
Zhejiang International Hong Kong	Zhejiang Expressway International (Hong Kong) Co., Ltd. (浙江滬杭甬國
	際(香港)有限公司), a wholly-owned subsidiary of the Company
Zheshang FoF	Zhejiang Zheshang Transform and Upgrade Fund of Funds Partnership
	(Limited Partnership), a 24.99% owned associate of the Company
Zheshang Securities	Zheshang Securities Co., Ltd. (浙商證券股份有限公司), a 54.7894% owned
	subsidiary of the Shangsan Co
Zhejiang Zheqi	Zhejiang Zheqi Industrial Co., Ltd.* (浙江浙期實業有限公司), a company
	established in the PRC, an indirectly non-wholly owned subsidiary of the
	Company
Zhoushan Co	Zhejiang Zhoushan Bay Bridge Co., Ltd.(浙江舟山跨海大橋有限公司), a
	51% owned subsidiary of Shenjiahuhang Co

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