(Hong Kong, 15 March2019) Shenzhen Expressway Company Limited (hereinafterreferred to as “Shenzhen Expressway", “the Company” or “the Group”; Stock Code: 600548.SH,00548.HK) announced that its wholly owned subsidiary Shenzhen ExpresswayEnvironmental Company Limited (hereinafter referred to as “EnvironmentalCompany”) entered into an agreement with Nanjing Wind Power Technology Co.,Ltd. (hereinafter referred to as “Nanjing Wind Power”) in relation to theacquisition of 51% equity interest of Nanjing Wind Power by way of equitytransfer and capital contribution at a consideration of RMB510 million (hereinafterreferred to as the “M&A Project”).

Take company’s strategyforward and optimise business structure with participation in wind powerbusiness

As a company engaged intransport infrastructure and environmental protection businesses, Shenzhen Expresswayhas made foray into many sub-sectors of the environmental protection industry,including water environment governance and solid waste treatment, by acquiringshares of two leading enterprises in the environmental protection industry in2017 and into the wind power business after consideration and analysis. Windpower, as a clean energy source, is a sub-sector under the big sector ofenvironmental protection business of the Group which is supported by nationalpolicies and has broad market prospects. Wind power industry covers suchsub-sectors as wind power equipment, wind power farm operation and wind powerfarm maintenance. In particular, the wind power farm operation business and thetoll road business share a very similar operation model as they are bothfranchise businesses with stable cash flows. Besides, the wind power farmoperation business has simpler management procedures than the toll roadbusiness and boasts an investment yield rate that can better meet the returnrequirement of the Company. The wind power farm operation business is in linewith the Company’s development strategy.

After the explosive growth andthe fall into a trough, China's wind power industry is gradually moving towardstable development. In recent years, the state has continuously introducedrelevant policies to promote the development of the wind power industry andfacilitate the rapid growth of the wind power industry. According to the “13thFive-Year Plan for the Development of Wind Power Sector” of the Nation EnergyAdministration, it is specified that the grid-connected installed capacity ofwind power projects shall reach 210 GW by the end of 2020 and there is still ashortage of nearly 50 GW. Besides, the proportion of wind power in energycomposition is less than 5%. But as more demanding regulations will be imposedon atmospheric control by the Chinese government, new energy will gain greatershares in the future. Therefore, China’s wind power market will have largerroom for growth. A high-tech company engaged in renewable energy and wind powerand an overall solutions provider of wind power generation system for windpower farm, Nanjing Wind Power owns independent intellectual property rightsover its core technology and has experience and capability in the development,construction, operation and management of wind power farms. Its business hasgood prospects in the market. Through the M&A Project, the Group willacquire advantages in equipment, technology, operation and maintenance and windpower farm resources, which can lay a foundation for the Group to rapidly enterthe wind power industry and to seek further growth.

The management ofShenzhen Expressway said that the M&A Project will comprise the Group’s acquisition of 30%equity interest of Nanjing Wind Power at a consideration of RMB210 million anda one-way capital contribution of RMB300 million into Nanjing Wind Power afterthe acquisition. Upon the completion of the transaction, Environmental Companywill hold 51% equity interest of Nanjing Wind Power, which, in turn, willbecome the non-wholly owned subsidiary of the Group and its financial resultswill be consolidated into the Group’s financial statements as well. The Group’sacquisition of the equity interests of Nanjing Wind Power is made at areasonable consideration, which, can not only expand the revenue source andprofit base of Shenzhen Expressway but also allow Shenzhen Expressway toestablish a complementary relationship with Nanjing Wind Power, accelerate theexpansion into the field of new energy and optimise the business structure ofthe Group. The investment in Nanjing Wind Power will effectively develop theGroup's major environmental protection business, which is in line with theGroup's development strategy and overall interests.

ShenzhenExpressway’s healthy and sustainable development underpinned by two majorbusinesses

The acquisition and capital contributionrepresent another milestone of Shenzhen Expressway in the execution of the dualmain businesses strategy and will enable the Group to expand the environmentalprotection business and further determine the sub-sectors under theenvironmental business, providing strong support for the Group’s stable,healthy growth in the long term. In addition, the acquisition and capitalcontribution will further consolidate Shenzhen Expressway’s core advantages ininvestment, management and operation and therefore are in line with thedevelopment strategy and interest of Shenzhen Expressway. The Group willfinalise the equity transfer as soon as practicable and will work closely withother shareholders and the management to achieve better production, operationand management and a larger business scale so as to create more lucrativereturns and greater values for shareholders and the society.