Zhejiang Expressway (576) H1 2025 earnings summary

Executive summary

• Revenue rose 3.8% year-over-year to Rmb8,685.46 million for the six months ended June 30, 2025, with profit attributable to owners up 4.0% to Rmb2,787.48 million.

• Expressway toll revenue grew 0.4% year-over-year, while securities business revenue surged 13.4% amid a recovering capital market.

• 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 Rmb46.51 cents, up 4.0% and 5.6% year-over-year, respectively.

• Gross profit was Rmb3,441.16 million, with securities investment gains of Rmb1,416.10 million, up 146.4% year-over-year.

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

• Current ratio stood at 1.30; adjusted current ratio (excluding customer deposits) was 1.50.

• Net cash from operating activities reached Rmb4,905.19 million.

Outlook and guidance

• The Group expects continued stable growth in China's economy and Zhejiang Province, supporting expressway business.

• 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, with aims to expand international and wealth management operations.