Zhejiang Expressway Co., Ltd. (0576) announced supplemental details regarding continuing connected transactions tied to multiple framework agreements. According to the document, the agreements cover areas including expressway maintenance, ancillary services, and securities-related dealings. The company highlighted two primary steps in determining the annual caps for 2026: establishing a baseline aligned with identified projects and operations, and adding a 35% risk buffer to address uncertainties in project scope, regulatory factors, and possible price fluctuations.

The company’s expressway segment, for instance, cites potential operational challenges such as weather conditions and emergency maintenance. Securities-related transactions, including OTC derivatives services provided by a subsidiary of Zheshang Securities, incorporate pricing policies benchmarked against market data, with no preferential terms for connected parties. Internal controls for derivatives focus on rigorous pricing models, regular validations, and record-keeping of all volatility inputs.

In addition, the company provided a breakdown of estimated 2026 transaction amounts covering various connected parties and project categories, ranging from digital transformation upgrades to human resources and insurance. The supplemental announcement also indicated that the process for setting annual caps carefully balances actual demand projections with prudent buffers for unforeseen events, ensuring the connected transactions remain compliant and reflective of current market conditions.

Dated March 2, 2026, the announcement underscored Zhejiang Expressway’s efforts to maintain transparency and robust risk management amid evolving operational and market dynamics.