Zhejiang HHN entered into a total of four transactions with Zhejiang Information in 2017

Zhejiang HHN (00576-HK) announced that reference was made to the Company's announcement dated 22 December 2017 in relation to the entering into of a technical cooperation and service agreement with Zhejiang Wisdom, a non-wholly owned subsidiary of the controlling shareholder of the Company, pursuant to which the Company and certain of its subsidiaries agreed to purchase highway operation monitoring and public travel information services from Zhejiang Wisdom. During the 12-month period immediately prior to the entering into of the Technical Cooperation and Services Agreement with Zhejiang Intelligence, the Company and certain of its subsidiaries entered into such Zhejiang Information Transactions with Zhejiang Information, pursuant to which the Company and certain of its subsidiaries agreed to enter into various agreements with Zhejiang Information in respect of (1) a data centre infrastructure platform development project at a consideration of RMB8,985,000; (2) a highway equipment management system at a consideration of RMB353,600; (3) a surveillance system improvement phase II project at a consideration of RMB280,000; and (4) an electronic road toll construction project at a consideration of RMB19,995,700. The announcement stated that as a wholly-owned subsidiary of the Company's controlling shareholder, Transportation Group, Zhejiang Information is able to fully understand the business and operational needs of the Company and maintain effective communication to provide better services to the Company. Zhejiang Information and its subsidiaries also have the relevant qualifications and expertise. These Zhejiang Information transactions were carried out in the ordinary course of the Company's business and the consideration paid by the Company to Zhejiang Information was not higher than the average market price and was not inferior to the price offered to the Group by independent third parties for similar services. (Caihua Intelligence Network)

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