Guangdong Provincial Expressway Development Co.Ltd.

Guangdong Provincial Expressway Development Co., Ltd. is a company primarily engaged in the tolling and maintenance of various expressways in China. Established in 1998 and listed on the Shenzhen Stock Exchange, the company operates key expressways including the Guangfo Expressway, Fokai Expressway, Jingzhu Expressway Guangzhu Section, and Guanghui Expressway. In addition to its core operations, the company invests in technological industries and provides relevant consultation services while holding stakes in several other expressway companies. The main business lines of Guangdong Provincial Expressway Development include the investment, construction, charging, and maintenance management of toll highways and bridges, positioning it within the highway transportation sector. The company controls expressways totaling 306.78 kilometers and participates in an additional 295.88 kilometers. The expressways under its management are integral to the National Expressway Network Planning and benefit from the economic growth of the Guangdong province, which supports stable traffic volumes and demand for expressway services.

The Company's main business is the investment, construction, charging and maintenance management of toll highways and bridges, which shall be classified into the road transport industry. Highway industry is the basic and leading service industry of national economy, which can rationally allocate relevant resources, improve the quality and efficiency of economic operation, and play a leading role in the transportation industry. As an important part of the highway industry, the expressway is an important national resource, which is characterized by high driving speed, large traffic capacity, low transportation cost and safe driving, and plays an important role in promoting national economic growth, improving people's live quality and safeguarding national security. With the basic penetration of the "ten-vertical and ten-horizontal" comprehensive transportation corridor and the basic completion of the "71118" national expressway network planning, China's expressway network has been continuously extended, with significantly increased industry development. According to the statistical data of the 2023 Statistical Bulletin on Development of Transportation Industry issued by the Ministry of Transport, by the end of 2023, the total mileage of expressways in China has reached 177,300 kilometers, with an increase of 183,600 kilometers. With China's economic development stepping into a new normal, the national economy is constantly growing, and Guangdong-Hong Kong-Macao Greater Bay Area construction are further advanced, the whole society's demand for supporting services of expressways is expected to increase continuously, and China's expressway industry still witnesses a large development potential in the future. As an important infrastructure industry for the development of national economy, most of the expressway transportation demands are rigid demands, which are less affected by macroeconomic fluctuations and less cyclical. As the operating income of expressway enterprises is mainly in cash, and the cash flow is abundant, it ensures the stability and security of expressway industry operation and finance. When the economy is booming, the rapid growth of traffic can drive the development of the industry to a certain extent; during the period of economic adjustment, the expressway industry can better resist the market impact caused by macroeconomic changes with its unique rigid demands. Therefore, the expressway industry is characterized by strong anti-risk ability and stable investment income. The toll revenue of expressway industry mainly depends on the regional economic development. The regional economy is the critical factor that influences the traffic volume. The Guangfo expressway and the Fokai expressway, controlled by the company, are part of the National Expressway Network Planning-“Five vertical and seven horizontal”, Jingzhu Expressway Guangzhu Section is a fast and convenient expressway, Guanghui Expressway is an important section of the national key highway-the 15th Hengshanwei to Yunnan Qingshuihe Highway, And many of the company’s equity-participation expressways that are part of the main skeleton of the Guangdong Provincial Expressway Planning-“Ten vertical and five horizontal”, which provides a strong guarantee for stable traffic volume. Meanwhile, the regional economy is the critical factor that influences the traffic volume, as Guangdong province is the economically developed region, with years’ continuous high growth of GDP, so that provides the stable rising demand for the company.