Zhejiang Expressway (576) H1 2026 earnings summary

Executive summary

• Revenue rose 21.0% year-over-year to Rmb10,508.17 million for the first half of 2026, driven by strong securities business growth despite a decline in toll road revenue.

• Profit attributable to owners decreased 3.2% year-over-year to Rmb2,697.20 million, with EPS down 4.0% to Rmb44.67 cents.

• No interim dividend was declared for the period.

Financial highlights

• Toll road revenue fell 5.4% year-over-year to Rmb4,854.71 million, accounting for 46.2% of total revenue.

• Securities business revenue surged 42.1% year-over-year to Rmb4,523.40 million, making up 43.0% of total revenue, with commission and fee income up 49.2% and interest income up 31.8%.

• Gross profit increased to Rmb3,491.46 million from Rmb3,441.16 million year-over-year.

• Securities investment gains rose 30.8% to Rmb1,851.71 million.

• Net cash outflow from operating activities was Rmb6,054.18 million.

Outlook and guidance

• The Group expects continued macroeconomic and geopolitical uncertainties but anticipates stable economic growth in China, with Zhejiang Province providing resilience for toll road operations.

• Plans include upgrading expressway service quality, advancing reconstruction and expansion projects, and accelerating digital and green initiatives.

• Securities business will focus on digital transformation, risk control, and expanding wealth management and asset management services.