Shenzhen Expressway Encourages Shareholders to Vote for Share Incentive Scheme and Facilitate Long-Term Development

HONG KONG, Nov 17, 2016 - (ACN Newswire) - On November 23, 2016, Shenzhen Expressway Company Limited ('Shenzhen Expressway' or the 'Company'; Stock Code: 00548) will hold (Wednesday) its third extraordinary general meeting of 2016, its second class meeting of 2016 for holders of A shares and second class meeting of 2016 for holders of H shares to consider the resolutions related to the Restricted A-share Incentive Scheme ('the Incentive Scheme'). The circular in relation to the Incentive Scheme was disclosed on October 27, 2016.

The Company states that the Incentive Scheme should cover a wide range of connected participants, including directors, senior management, middle managers as well as key management and technical backbone personnel. The total number of participants is 74. The number of restricted shares is 16.99 million shares, representing 0.78% of the Company's total share capital. The grant price is set at RMB5.35 per share. The unlocking period spans three years with strict unlocking conditions each year. For example, the cash dividend payout ratio as stipulated in the conditions shall not be lower than 43% annually. The strictness of these unlocking conditions bolsters management's confidence in the Company's future development. The Board of Directors of the Company says that the grant price, issue size and pricing allowance in relation to the Incentive Scheme are decided in the best interests of the shareholders. The strict unlocking conditions accentuate the fairness of the Incentive Scheme's share allocation, thus ensuring the scheme's practicality and enhancing participants' motivation.

Shenzhen Expressway is now undergoing a crucial new phase of strategic development. The Company has set its main direction on becoming a major service provider of city and transportation infrastructure construction and operations. It is also a major force in environmental industries, such as water environmental governance and waste disposal. Utilising its advantages of resources and core competitiveness, the Company is posed to fully exploit its business model and rely on its resource integration strengths in order to achieve long-term, healthy growth and create more value for shareholders. Meanwhile, the new development strategy suggests 'a mechanism of long-term incentives for employees as well as shared interests and responsibilities' serving one of the Company's key strategies, which aims to bring about a medium-to-long-term incentive mechanism for employees. It also indicates that the proposed mechanism should lead to inviting more talented personnel to the Company's community of shared interests. Therefore, Shenzhen Expressway at the beginning of 2016 introduced the Restricted A-share Incentive Scheme for the purposes of building a long-term incentive mechanism to attract and retain talented personnel, motivating the passion of management personnel, and creating links among the interests of shareholders, the Company and its employees so that all the involved parties would be more proactive about the long-term developments and strategic implementation.The Incentive Scheme has been formulated in accordance with all relevant laws and regulations and its terms are scientific and reasonable as illustrated in its methods of providing an incentive, the type, amount and grant price of the restricted shares, as well as the validity period, lock-up period and unlocking period. The Incentive Scheme also encourages the Company's directors, senior management, middle managers and technical backbone personnel to become long-term shareholders and link their personal interests with the Company's performance. This will help overcome possible short-term behavior during management's terms in office and will encourage them to show undivided dedication to the production and management of the Company in order to achieve actual improvement of operating results. This notion of improving the Company's performance and ensuring consistent long-term development is a manifestation of the obligations a listed company has to its shareholders and investors.The Board is of the opinion that the Incentive Scheme serves as a giant step toward implementation of the Company's new development strategy, which embodies the principle of reciprocity between revenue and contribution under the premise of fully protecting the interests of its shareholders. It also acts as an active agent to reform state-owned enterprises. The Company's Independent Board of Directors and independent financial consultants also suggest that shareholders vote for the Incentive Scheme as its implementation will carry huge significance for both the Company and the industry in general. Therefore, the Board encourages all shareholders to actively participate in the decision-making process and support the Company's development in order to contribute toward implementation of the Company's long-term development strategy and to achieve a 'win-win' for its shareholders and employees.*Notes:1. Shareholders of Shenzhen Expressway are encouraged to cast their votes; for details, please contact your stockbroker or Computershare Investor Services, or please find the below link to visit the company's website to learn about the voting process and the latest announcements:http://www.sz-expressway.com/openNews.aspx?CID=60276http://www.sz-expressway.com/category.aspx?NodeID=312