On 23 April 2026, Zhejiang Expressway Co., Ltd. (ZHEJIANGEXPRESS) signed a Cooperation Agreement with Zhejiang Communications Group’s subsidiaries—Technology Research Institute, Zhejiang Institute of Communications (ZJIC), Zhejiang Information Engineering Technology and Zhejiang Provincial Commercial Group—to launch a joint venture focused on investment, construction and operation of low-altitude infrastructure.

The joint venture will be formed with registered capital of RMB200.00 million. Capital will be injected in two tranches: RMB80.00 million within 90 days of establishment and RMB120.00 million by 31 January 2031. Equity and cash contribution breakdown is as follows: • ZHEJIANGEXPRESS: RMB120.00 million (60%) • Technology Research Institute: RMB30.00 million (15%) • ZJIC: RMB20.00 million (10%) • Zhejiang Information: RMB20.00 million (10%) • Zhejiang Provincial Commercial Group: RMB10.00 million (5%)

Corporate governance is structured to give ZHEJIANGEXPRESS effective control. The nine-member board will include five directors nominated by ZHEJIANGEXPRESS, and the chairperson, general manager, two deputy general managers and the finance head will all be nominated by ZHEJIANGEXPRESS. An audit committee of three directors—two nominated by ZHEJIANGEXPRESS—will be chaired by a ZHEJIANGEXPRESS nominee.

The initiative aligns with China’s 2026 Government Work Report designating the low-altitude economy as an emerging pillar industry, and supports Zhejiang Province’s industrial planning. Integration of low-altitude technologies—such as UAV inspections and digital monitoring—aims to enhance operational efficiency, safety and cost management across the group’s expressway network.

Because all four joint-venture partners are subsidiaries of Zhejiang Communications Investment Group, ZHEJIANGEXPRESS’s controlling shareholder, the formation constitutes a connected transaction under Hong Kong Listing Rules. The applicable percentage ratios exceed 0.1% but are below 5%; hence the deal requires reporting and announcement but is exempt from independent shareholders’ approval. Directors Mr. Yuan Yingjie, Mr. Fan Ye and Mr. Huang Jianzhang, employees of Communications Group, abstained from the board vote; all other directors approved the agreement.

In a supplemental disclosure, ZHEJIANGEXPRESS reiterated the remuneration framework for its 10th board (1 July 2024–30 June 2027). Annual fixed remuneration is set at RMB1.01 million, RMB1.04 million and RMB1.07 million respectively for the Chairman/Party Secretary/General Manager, and RMB0.86 million, RMB0.88 million and RMB0.91 million for Directors/Deputy General Managers. Non-executive directors receive no fixed emoluments. Newly elected employee director Ms. Liu Yiying will receive performance-linked pay for her existing executive roles without additional director fees; final amounts will be disclosed in the respective annual reports.