Securities Code: 001965 Securities Abbreviation: China Merchants Expressway
China Merchants Expressway Network & Technology Holdings Co., Ltd. 2025 Annual Report of the Board of Directors
To all shareholders of China Merchants Expressway Network & Technology Holdings Co., Ltd.:
In 2025, the Board of Directors of China Merchants Expressway Network & Technology Holdings Co., Ltd. (hereinafter referred to as the "Company" or "China Merchants Expressway") deeply studied the spirit of the 20th National Congress of the Communist Party of China and the Fourth Plenary Session of the 20th Central Committee, implemented the arrangements of the Central Economic Work Conference and the requirements of the State Council on strengthening capital market regulation and promoting high-quality development, and deeply implemented the "Third Entrepreneurship" strategic deployment of China Merchants Group. The Board of Directors continuously leveraged its core functions of "setting strategy, making decisions, and preventing risks," united and led all cadres and employees to uphold integrity, innovate, and diligently perform their duties. The company successfully completed all tasks of the deepening reform of state-owned enterprises, achieved steady improvement in operational quality and efficiency, continuously enhanced governance effectiveness, and strove to write a new chapter of high-quality sustainable development for the company with practical achievements.
I. Board of Directors Construction and Responsibility Implementation
The Company's Board of Directors conscientiously implemented the important discourse of "the two unifications," fully implemented the work requirements for deepening the construction of a modern enterprise system with Chinese characteristics, and formulated and improved the rules of procedure for the Board of Directors' special committees and decision-making processes. The supervisory and risk prevention functions of the Board of Directors' special committees were strengthened. By improving the company's governance operating mechanisms, the quality of the Board of Directors' construction was further enhanced.
(I) Board of Directors Construction
During the reporting period, the Board of Directors revised 13 management systems, including the "Articles of Association," and formulated 2 systems, including the "Market Value Management System" and the "Information Disclosure Suspension and Exemption Management System," to ensure the efficient and standardized governance mechanism of the listed company. The company continued to promote the improvement of corporate governance and market image. As a result, the company's stock was included in major indices such as the SZSE 100, CSI 300, SSE A50, and MSCI. The company was also selected as one of the "Top 100 Best Practices for ESG in China's Listed Companies in 2025 by Wind" and received 28 awards, including "Top 100 Companies for Cash Dividends in 2024 by CICPA" and "Best Practice Cases for Boards of Directors of Listed Companies in 2025." The number of awards reached a new high. In addition, in the second half of the year, the company completed a share buyback and cancellation, using a cumulative fund of RMB 310 million to repurchase 25,242,402 shares.
The Company's Board of Directors continuously deepened the ESG system and set an excellent example. During the year, 9 ESG policies were formulated or revised, including the "Occupational Health and Safety Policy." The company completed specialized reports in ESG sub-fields, such as the "China Merchants Expressway Double Materiality Analysis Report," "Carbon Inventory Report," and "Climate-Related Disclosure White Paper." The company's ESG governance was highly recognized by the capital market. S&P Global's Sustainability Performance Score improved from 18 to 53 points, ranking first in China's highway companies' CSA ratings for the first time. The company's stock was included in representative indices such as "300 ESG Leaders," "Central SOE ESG 50," and "MSCI China ESG." It was also included in 318 public ESG funds, such as the "FTSE China SOE Open and Win-Win ETF" by Southern Fund. This demonstrates that the company has reached the industry's leading position in ESG management, practice, and performance and is beginning to lead the industry.