Zhejiang Expressway (576) H1 2025 earnings summary

Executive summary

• Revenue for 1H2025 rose 3.8% year-over-year to RMB 8,685.46 million, with profit attributable to owners up 4.0% to RMB 2,787.48 million and net profit up 17.4% to RMB 3,924.62 million.

• Toll road business contributed 59.1% of revenue, up 0.4%, while securities business accounted for 36.6% and surged 13.4% year-over-year.

• The Group advanced digital transformation, green initiatives, and completed a strategic acquisition of a 51% stake in Guisan Expressway.

• No interim dividend was declared for 2025.

Financial highlights

• Basic and diluted EPS were RMB 46.51 cents, up 4.0% and 5.6% year-over-year, respectively.

• Gross profit was RMB 3,441.16 million, with securities investment gains of RMB 1,416.10 million, up 146.4% year-over-year.

• Finance costs decreased 17.6% year-over-year.

• Net cash from operating activities reached RMB 4,905.19 million.

• Return on owners' equity was 6.0%, down 8.7% year-over-year.

Outlook and guidance

• External instability and uncertainty expected to rise in 2H2025, but China’s and Zhejiang’s economies are projected to remain stable with positive momentum.

• Strategic focus on expanding growth, digitalization, green initiatives, and stabilizing profitability.

• Plans include accelerating expressway upgrades, expanding green and intelligent transportation, and exploring REITs and innovative financing.

• Securities business faces both opportunities from market reforms and challenges from global volatility and regulation.