ZHEJIANG EXPRESS (00576) announced that on September 10, 2025, its non-wholly owned subsidiary Zhajiasu Company entered into a supplementary arable land quota adjustment agreement with Shenhai Company. Under the agreement, Shenhai Company has agreed to transfer the surplus supplementary arable land quota from the Sanmen Maaoling section of the Yongtaiwen Expressway expansion project to Zhajiasu Company for use in its project, while Zhajiasu Company agrees to pay fees for this supplementary arable land quota adjustment.

According to relevant regulatory requirements issued by the State Council and the Ministry of Land and Resources, a new compensation mechanism based on quantity and centered on production capacity has been established. This mechanism ensures compensation balance through the implementation of a write-off system for three types of indicators: arable land quantity, grain production capacity, and paddy field area. Therefore, given that the project requires the occupation of arable land, Zhajiasu Company must purchase supplementary arable land quotas in accordance with relevant regulations on arable land occupation and compensation balance.

Due to tight supply of provincial and local quotas, when Zhajiasu Company applied to the Zhejiang Provincial Department of Natural Resources or the Jiaxing Natural Resources and Planning Bureau, it was unable to simultaneously obtain all three types of quota scales required for the project. Additionally, due to policy adjustments by the Ministry of Natural Resources, Zhajiasu Company's application for national coordination quotas was not approved.

Subsequently, upon recommendation by relevant government departments, the project can utilize surplus supplementary arable land national coordination quotas through cross-city adjustment. The adjustment of surplus supplementary arable land quotas from the Sanmen Maaoling section of the Yongtaiwen Expressway expansion project to this project will ensure that the arable land quotas required for the project are satisfied.

According to the supplementary arable land quota adjustment agreement, Shenhai Company will transfer the surplus supplementary arable land quotas to Zhajiasu Company at the original purchase price, which also conforms to the unit prices of similar projects in Zhejiang Province over the past three years. Furthermore, purchasing supplementary arable land quotas from Shenhai Company offers a better total price compared to purchasing quotas from the Jiaxing Municipal People's Government.