Zhejiang Expressway : Interim Report

STOCK CODE 0576

2023

INTERIM REPORT

Focusing on the core business to enhance the long-term investment value of the Company

Seizing Opportunities to advance steady progress in securities business

In the first half of 2023, the Group endeavored to the primary task of high-quality development, continued to focus on the development of its core business, and continuously deepened market-oriented operation for the core business. The Group made great effort in implementing a range of initiatives and constantly improved its core competitiveness through technological innovation, reform and the strengthening of corporate governance. Meanwhile, the Group made efforts to optimize and strengthen its core expressway business through the advance of reconstruction and expansion projects in an orderly manner and the increased efforts in capital operation, which helped enhance the long-term investment value of the Company.

Focusing closely on the business strategic goal of serving the real economy, Zheshang Securities, a subsidiary of the Group, seized the opportunities arising from the recovery of the securities market, accelerated reform and development, and actively promoted the steady development of various businesses. In particular, businesses such as investment banking, margin financing, securities investment and futures brokerage achieved growth in both scale and revenue, allowing Zheshang Securities to steadily move towards the top tier of the industry.

2023

INTERIM REPORT

1. Definition of Terms

1. 2023 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

60 Corporate Information

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

2023 INTERIM REPORT

Definition of Terms

Audit Committee	the audit committee of the Company
Board	the board of directors of the Company
China Merchants Expressway	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 state-controlled 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
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
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
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

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Definition of Terms

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, 2023 to June 30, 2023
PRC	the People's Republic of China
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
	Expressway, 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), an associate company indirectly owned by the Company through
	its subscribing 30% of the subordinated class of the CICC-Zhejiang
	Expressway-Shenjiahuhangasset-backed special program
SRCB	Shanghai Rural Commercial Bank Co., Ltd. (上海農村商業銀行股份有限公
	司) a 4.92% 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
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 owned as to
	45.28% by Communications Group
Zhejiang Grand Hotel	Zhejiang Grand Hotel Limited (浙江大酒店有限公司), a wholly-owned
	subsidiary of the Company
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 54.79% 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 the Company

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