Zhejiang Expressway : Interim Report

Vigorously Expanding the Scale of Toll Road Business and Constantly Strengthening t h e C o m p e t i t i v e n e s s o f Securities Business

In the first half of 2021, the Company leveraged the advantages of its resources to solidly pursue its key development projects. The Company remained focused on building a renowned brand for expressway operations and services in China, actively improved capabilities in technological innovation, accelerated the construction of intelligent expressways, and continuously elevated operational and service qualities. Furthermore, the Company steadily pursued investment and M&A projects and effectively expanded the scale of its core business, with an aim to further enhance its brand influence and core competencies.

Zheshang Securities, a subsidiary of the Company, proactively took advantage of market opportunities, enhanced the synergies between its business segments, and established its brand characteristics. Overall business development maintained a steady growth, progressively advancing towards its goal of becoming a top-tier securities company in China.

2021

INTERIM REPORT

1. Definition of Terms

1. 2021 Interim Results
2. Business Review

1. Financial Analysis

1. Outlook
2. 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

Appendices

65 Corporate Information

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

02

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
Independent third party(ies)	any person(s) or company(ies) and their respective ultimate beneficial
	owner(s), to the best of the Directors' knowledge, information and belief
	having made all reasonable enquiries, are third parties independent of the
	Group and its connected persons in accordance with the Listing Rules
Jiaxing Co	Zhejiang Jiaxing Expressway Co., Ltd. (浙江嘉興高速公路有限責任公司), a
	99.9995% owned subsidiary of the Company
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

2021INTERIM REPORT

03

Definition of Terms

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
Period	the period from January 1, 2021 to June 30, 2021
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
	joint stock limited 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 4.83% owned associate of the Company
Yangtze Financial	Yangtze United Financial Leasing Co., Ltd. (長江聯合金融租賃有限公司), a
Leasing	10.61% owned associate of the Company
Yuhang Co	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
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 Securities	Zheshang Securities Co., Ltd. (浙商證券股份有限公司), a 54.7894% owned
	subsidiary of the Shangsan Co
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