Group 1: Impact of COVID-19 Policies - The company anticipates short-term negative impacts on the highway industry due to the toll exemption policy implemented from February 17, 2020, until further notice [3] - The company is closely monitoring the progress of supporting policies from the Ministry of Transport [3] Group 2: Future Development Plans - The company aims to solidify and expand its core highway business, actively pursuing quality highway project investment opportunities [3] - Plans include accelerating the expansion of the southern section of the Fokai Expressway and optimizing asset structure to increase controlling highway projects [3] - The company is exploring the development of smart transportation and enhancing its market presence in this sector [3] Group 3: Financial Management - During the pandemic, the company adjusted the repayment schedule for some loans while ensuring normal operations of its highways [4] - The recent issuance of a 5-year medium-term note worth CNY 750 million is aimed at repaying existing debts and supplementing working capital [4] Group 4: Strategic Investor Plans - Currently, there are no plans to introduce additional strategic investors [4] Group 5: Asset Depreciation and Traffic Forecasting - The company will hire professional agencies to predict traffic volume when there are significant discrepancies between actual and forecasted traffic [4] - Depreciation for the southern section of the Fokai Expressway will follow the original toll period until the new operating period is approved [4]

Group 1: Investment and Development Strategy - The company continues to follow the "13th Five-Year" development plan, focusing on steady progress and sustainable development in the highway sector [2] - Emphasis on consolidating the core competitiveness of the highway business and expanding related industries [2] - Plans to enhance the supervision and coordination of the Fokai South Highway and Huizhan Highway expansion projects to minimize negative impacts on traffic [2] Group 2: Financial Performance and Impact - The Fokai South Highway expansion project has been solidified with an investment of approximately 1.2 billion yuan [3] - The company is actively tracking quality highway project investment opportunities to increase its controlling projects [3] - The adjustment of the ETC discount from July 1, 2019, from 98% to 95% is expected to negatively impact toll revenue but may promote an increase in ETC traffic [3] Group 3: Traffic Flow and Market Dynamics - The opening of the Nansha Bridge and the first phase of the Fangguan Highway has led to a decrease in traffic flow towards the Humen Bridge, affecting the revenue of the Guangzhu East Highway [3] - The completion of the Fokai South Highway expansion is anticipated to positively influence traffic flow back to the Fokai Highway after the implementation of new toll standards [3] - The impact of the Yunzhang Phase II and Foshan Ring Road on traffic volume is being closely monitored, with expectations of stabilization in the long term [3]

Group 1: Financial Impact and Policies - The company is closely monitoring the progress of compensation policies related to the toll-free policy implemented during the pandemic, aiming to minimize its impact [3]. - The company has issued a 5-year medium-term note (MTN) worth 750 million yuan, with future financing plans dependent on capital needs [3]. - The company maintains a stable financial position with a low debt ratio, ensuring normal operations during the pandemic [3]. Group 2: Operational Adjustments - The Guangdong province's truck discount policy (85% off using the Yue Tong card) does not affect the company's controlled road sections [3]. - The company will hire professional agencies to predict traffic volume when there are significant discrepancies between actual and forecasted traffic [3]. - The depreciation of fixed assets will follow the original charging period until a new operating period is approved for the Fokai South section after its expansion [3]. Group 3: Traffic and Revenue Considerations - The adjustment of the ETC discount from 98% to 95% starting July 1 will negatively impact toll revenue but is expected to increase ETC traffic volume [3]. - The maintenance work on the bridge surface of the Gaizhou East company is not expected to significantly affect traffic volume [3].