Executive Summary & Key Highlights

• Profit attributable to equity shareholders increased by 2% YoY to RMB468 million, driven by reduced finance costs and performance of joint ventures.
• Final dividend proposed of RMB7.60 cents per share, with a full-year payout ratio of 100% of profit attributable to shareholders.
• Total net toll revenue from GS Superhighway, GZ West Superhighway, and Coastal Expressway (Shenzhen Section) was RMB2,619 million, with significant growth at Coastal Expressway due to new infrastructure openings.
• Grand Park City, a key land development project, achieved contract sales of RMB1,434 million in 2025, with cumulative sales reaching RMB5,989 million since launch.
• Major reconstruction and expansion projects for the Guangzhou-Shenzhen Section of the Beijing-Hong Kong-Macao Expressway are underway, with pilot construction commenced in late 2025 and total investment for the Shenzhen section approved at RMB21.433 billion.

Financial Performance & Dividend Policy

• Revenue from investment projects: RMB2,668 million.
• Basic earnings per share: RMB15.17 cents (up 1% YoY).
• Dividend payout ratio remains at 100%, continuing the company’s tradition of high dividend payouts (historically 75-100%).
• Interim dividend paid: RMB7.55 cents/share (paid Nov 7, 2025). Proposed final dividend: RMB7.60 cents/share (subject to AGM approval).
• Dividend will be payable in RMB or HKD, with shareholders able to elect their preferred currency.

Shareholders should note: The dividend policy is subject to review based on business position, major investment needs, and industry policy changes. The full-year payout ratio is unusual in the current economic climate and may be price-sensitive.

Operational Overview

• Expressway Network:
  • GS Superhighway: Average daily toll revenue down 2% (RMB7.72 million), but traffic up 2% (642,000 vehicles). Impacted by network changes and closures.
  • GZ West Superhighway: Average daily toll revenue down 11% (RMB3.10 million), traffic flat. Diversion effects from new expressway connections eased in Q4 2025.
  • Coastal Expressway (Shenzhen Section): Toll revenue up 7% (RMB2.15 million), traffic up 10% (226,000 vehicles). Benefited from opening of Phase II, Shenzhen-Zhongshan Link, and Mawan Tunnel.
• Grand Park City (Land Development):
  • Three new blocks launched for pre-sale in 2025.
  • Average sales price: RMB19,000/sqm in 2025 (RMB22,000/sqm cumulative).
  • Five blocks yet to be delivered, scheduled for mid-2026 to 2027.
• Beijing-Hong Kong-Macao Expressway (Guangzhou to Shenzhen Section):
  • Reconstruction and expansion project divided into two phases; full implementation underway.
  • Shenzhen section approved in June 2025, pilot construction commenced end-2025. Registered capital of GSZ Company increased to RMB7,300 million, with Hopewell China Development contributing RMB3,285 million (45%).

Strategic Outlook & Expansion Plans

• 2026 marks the launch of the Group’s “15th Five-Year” Plan, focusing on:
  • Consolidating toll road operations and expanding land development opportunities in the Greater Bay Area.
  • Continuing reconstruction and expansion of the key expressway section as per project schedule.
  • Seeking M&A opportunities for expressway assets, and exploring road-based economy and new business models.
• Potential land value unlocking at Luogang Interchange (Guangzhou) via transformation for residential/commercial use, with active engagement with local authorities.

Macro & Industry Environment

• Chinese Mainland GDP grew 5% YoY to RMB140.2 trillion; Guangdong provincial GDP grew 3.9% to RMB14.6 trillion.
• Greater Bay Area foreign trade exceeded RMB9.15 trillion, 20% of national total. “Shenzhen-Hong Kong-Guangzhou” ranked No.1 globally in the Global Innovation Index 2025.
• New policies supporting public-private partnerships in toll roads, automobile consumption, and low-altitude economy (including infrastructure integration and new application scenarios) are in effect.
• Vehicle ownership in Mainland China reached 469 million (366 million automobiles), supporting toll road demand.

Financial Position, Liquidity & Risks

• Group assets: RMB13.34 billion, liabilities: RMB5.49 billion, net assets: RMB7.85 billion.
• Debt-to-asset ratio: 41% (up from 40%); gearing ratio: 66% (down from 74%).
• Bank loans (Group & JVs): RMB8.04 billion; 85% denominated in RMB, remainder in HKD.
• Debt maturity: 73% of corporate loans repayable within 1 year; 27% between 1-5 years.
• No material contingent liabilities. No material acquisitions or disposals in 2025.
• Financial position bolstered by structured deposits and internal cash management. No derivatives used for hedging.

Shareholders should note: Large capital commitments to expressway expansion may affect future dividend policy and funding needs. High gearing and short-term debt profile should be monitored.

Corporate Governance & Employment

• Board confirms full compliance with Corporate Governance Code for 2025.
• 549 employees (including 485 at Coastal Company); competitive remuneration, bonus, and benefits provided.
• No purchase, sale, or redemption of securities by the Company or subsidiaries during 2025.

Potential Price-Sensitive Information

• Full-year dividend payout ratio at 100% is notable and may be viewed positively by income-focused investors.
• Progress on large-scale expressway reconstruction projects, with substantial capital commitments and government approvals, could affect future earnings and asset values.
• Grand Park City sales performance and future deliveries will impact land development returns.
• Ongoing policy support in the Greater Bay Area, innovation leadership, and infrastructure integration may drive future growth.
• Debt profile (high proportion of short-term maturities) and financing for new projects are areas for shareholder vigilance; future dividend policy may be revisited based on funding needs.