Zhejiang Expressway (576) H2 2025 earnings summary

Executive summary

• Revenue increased by 9.4% year-over-year to RMB 19,755.49 million, driven by strong securities business growth despite a 2.6% decline in toll road revenue.

• Net profit rose 9.9% year-over-year to RMB 7,863.54 million, with significant contribution from the securities business, though profit attributable to owners fell 3.2% to RMB 5,324.96 million.

• Major investments included full ownership of Yonglan Expressway, 51% of Guisan Expressway, and 51% of Ningbo-Zhoushan Expressway Parallel Line Phase II.

• Dividend per share recommended at RMB 39.5 cents, up from RMB 38.5 cents last year.

• Reconstruction and expansion projects for key expressways are progressing steadily, supporting long-term growth.

Financial highlights

• Revenue: RMB 19,755.49 million (+9.4% YoY); Toll road business contributed 52.6%, securities business 38.2%.

• Net profit: RMB 7,863.54 million (+9.9% YoY); EPS (basic/diluted): RMB 88.62 cents.

• Securities investment gains surged 62.5% YoY to RMB 2,819.17 million.

• Gross profit was RMB 6,775.19 million, down from RMB 7,252.46 million in 2024.

• ROE reached 16.8%, up from 11.9% in 2024, but return on equity for owners was 11.0%, a 7.6% decrease YoY.

Outlook and guidance

• China and Zhejiang Province economies expected to maintain stable growth, supporting business expansion.

• 2026 outlook anticipates moderate global recovery but ongoing risks from policy shifts, geopolitics, and trade friction.

• Focus on technological empowerment, digitalization, and green initiatives to drive future growth.

• Expressway business expects steady traffic growth, leveraging intelligent technologies and service upgrades.

• Securities business to benefit from policy support and financial technology, focusing on core business and innovation.