Share Incentive Schemes Boosts Development and Benefit Shareholders, Promises a Bright Future for Shenzhen Expressway (SEHK:00548)

HONG KONG, Nov 18, 2016 - (ACN Newswire) - Share Incentive Schemes is an effective incentive tool under the modern enterprise system. Share incentives are linked to stock performance in the capital market with the core benefits at the management level, whereby in order to earn bonus profits, motivated managers must expand business and achieve better results. Share incentives have now become one of the most important ways to retain core talent and boost business growth in a listed company. While motivating and rewarding managerial level staff, it also has a direct positive impact on a company's business operations, which results in improved performance, and to a great degree, is reflected in a company's share price.

In recent years, more and more enterprises are retaining their core talent and motivating them to work harder through share Incentive Schemes in order to accelerate long-term enterprise development. As a long-term reward mechanism, share incentives have been complementing short-term rewards like wages, bonuses and welfare, and today have become a key component of the overall salary system. Moreover, implementing a share Incentive Schemes sends a positive signal from a company to capital markets, and is a very attractive signal for investors, especially corporate investors.

Shenzhen Expressway Strives to Benefit Its Shareholders by Actively Promoting A-share Incentive Schemes

Shenzhen Expressway Company Limited ('Shenzhen Expressway' or the 'Company', Stock Code: 00548), is a pioneer among government-owned corporations in promoting A-share Incentive Schemes. Our active promotion of a 'Restricted A-Share Incentive Schemes' is aimed at boosting the Company's future performance and providing long-term benefits to our shareholders. This Incentive Schemes involves motivating a wide range of targets, including company directors, senior management personnel, middle level management, core managers and core technical staff. The Scheme is aimed at 74 people in total, and grants 16.99 million shares of restricted stock at a price of RMB5.35 per share, equal to 0.78% of the Company's total stock amount. The setting of a grant price, issue size and discount price protects the interests of the Company's shareholders. The Scheme also has a 3-year unlocking period and the unlocking requirements for each year are very challenging with the ratio of the cash dividend never falling lower than 43% every year. These strict unlocking requirements will boost participants' morale and esprit de corps while highlighting management level personnel's confidence in the Company's future performance growth.

High Interest Along With Huge Growth, Shenzhen Expressway Performance Continues with Strong Expansion

The foundation for implementing an Incentive Schemes is based on stable and strong performance. In recent years, the key selling point for highway stocks has been its high interest return, and with the number extended holiday trips across mainland China increasing, more people are opting to drive themselves on short haul trips, which has significantly helped the strong growth of expressway industry. As a leading company for highway stocks in China, Shenzhen Expressway, with its stable cash flow, has achieved outstanding performance over the first three quarters of 2016, and has earned RMB 947 million net profit for shareholders, a year-on-year growth rate of 11.00%, setting a strong foundation to meet the whole year's performance growth target.

The current situation is a key moment for Shenzhen Expressway to execute the first phase of its development strategy, as it executes its core operational direction as a 'City and Transportation Infrastructure Service Operator'. The Company also has a new corporate development direction with respect to environmental protection that includes conservation and treating solid waste with the use of water. Based on current advantageous resources and key competitive strengths, Shenzhen Expressway is now poised to unleash the power of business innovation through the aggregation and integration of resources, resulting in a period of long and healthy growth that creates more value for shareholders. The imminent potential launch of the 'Restricted A-share Incentive Schemes' will further bolster and complete the Company's long-term incentive mechanisms while attracting and maintaining top talents, significantly improving the morale of management level staff and effectively linking them to the interests of shareholders, the Company and the personal interests of operators. The ultimate aim is to make every party focus on the Company's long-term development in order to help push strategy implementation forward. In the opinion of the Board of Directors, putting in place the 'Restricted A-share Incentive Schemes' is an important move in order to initiate the first phase of our Company's developmental strategy. It will be of great significance to the Company and to the industry as a whole, ensuring maximisation of future profits for shareholders. The market as well generally feels that promoting A-share Incentive Schemes will boost staff morale, accelerate diversified development, maximise long-term profits for all shareholders and ensure healthy long-term company growth.

This Share Incentive Proposal will be considered and reviewed at the shareholders general meeting on 23rd November 2016. The Company's Independent Board committee and independent financial consultants together suggest that shareholders to give an affirmative vote to the proposal.In the latest announcement, the Company's Board also expects all shareholders to actively participate in the decision-making process, give an affirmative vote, support the Company's overall development, and create a win-win situation for shareholders and staff.*Note:1. Shenzhen Expressway shareholders are encouraged to vote, please contact your stockbroker or Computershare Investor Services, or visit the Company website to learn more about the voting procedure and the latest information:http://www.sz-expressway.com/openNews.aspx?CID=60276 http://www.sz-expressway.com:82/Category.aspx?NodeID=277