The board of the Zhejiang Expressway Co., Ltd. announce that, on September 6, 2023, the Company entered into an agreement with Zhejiang Road and Transportation Management Center and Jinhua Road and Transportation Management Center in respect of the investment and implementation of the reconstruction and expansion project of Ningbo-to-Jinhua section (Jinhua Section) of the Ningbo-Jinhua Expressway (the "Project"). Accordingly, Zhejiang Jinhua Yongjin Expressway Co., Ltd. a wholly owned subsidiary of the Company, being the project company (the "Project Company") to be designated for the implementation of the Project will enter into the concession agreement (the "Concession Agreement") with Zhejiang Road and Transportation Management Center* and Jinhua Road and Transportation Management Center* in due course to obtain the concession right to invest in, finance for, construct, operate and manage the Project. The Project involves the reconstruction and expansion of the Ningbo-Jinhua Expressway (Jinhua Section), starting at the interchange of Changle Town, Shengzhou City, Shaoxing and Hulu Town, Dongyang City, Jinhua and ending at Fucun Interchange, connecting to Hangzhou-Jinhua-Quzhou Expressway, with a total length of about 69.736 kilometers.

For avoidance of doubt, the working scope of the Project does not include the civil construction of Yiwu Shuangjiang Lake section of approximately 3.6 kilometers but the Project Company will be responsible for its operation upon completion of the Project. The Project Company shall be responsible for fund raising, construction and implementation, operation and management, maintenance and repair, debt repayment and management of assets for the Project and enjoy the right of vehicle tolls, service facilities operation and advertising during the tolling period. The total investment amount of the Project is approximately RMB 19,418.6 million, including the investment in civil construction of Yiwu Shuangjiang Lake section which will be undertaken by the government.

Such total investment amount is subject to the project budget estimates to be approved by Zhejiang Provincial Development and Reform Commission. The concession period of the Project includes the construction period and the tolling period. The expected construction period of the Project is four years.

The tolling period shall commence from date of the Project delivery, which is expected to be 25 year (300 months), subject to the approval from the People's Government of Zhejiang Province.