2015 First Quarterly Results Announcement

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                              ZHEJIANG EXPRESSWAY CO., LTD.

(A joint stock limited company incorporated in the People's Republic of China with limited liability)
                                       (Stock code:576)


                           2015 FIRST QUARTERLY RESULTS ANNOUNCEMENT

The directors (the "Directors") of Zhejiang Expressway Co., Ltd. (the "Company") are pleased to announce 
the first quarterly results of the Company and its subsidiaries (the "Group") for the three months 
ended March 31, 2015 (the "Period").

The audit committee of the Company has reviewed the quarterly results of the Group for the Period. 
Set out below are the Group's unaudited condensed consolidated statement of profit or loss and other 
comprehensive income, unaudited condensed consolidated statement of financial position and unaudited 
condensed consolidated statement of cash flows for the Period together with the comparative figures 
for the corresponding period of 2014:

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

                                                 For the three months ended March 31,
                                                             2015               2014
                                         Notes            Rmb'000            Rmb'000
                                                       (Unaudited)        (Unaudited)
                                                    -------------     --------------
Revenue                                     1           2,470,398          2,018,110
Operating costs                                        (1,413,107)        (1,246,087)
                                                    -------------     --------------
Gross profit                                            1,057,291            772,023 
Securities investment gains                                78,376             21,209 
Other income                                2              48,867             48,329 
Administrative expenses                                   (18,115)           (14,100)
Other expenses                                            (24,302)            (9,590)
Share of profit of associates                              11,183             16,321 
Share of loss of a joint venture                           (7,446)            (7,489)
Finance costs                                             (56,849)           (21,141)
                                                    -------------     --------------
Profit before tax                                       1,089,005            805,562 
Income tax expense                                       (277,633)          (202,244)
                                                    -------------     --------------
Profit for the Period                                     811,372            603,318
                                                    -------------     --------------
Other comprehensive income (loss)            
 Items that may be reclassified 
  subsequently to profit or loss:            
 Available-for-sale financial assets:            
 --Fair values gain (loss) during the 
    Period                                                  9,444             (1,785)
 --Reclassification adjustments for 
    cumulative gain included in profit 
    or loss upon disposal                                    (650)                 -
 Income tax relating to components of 
  other comprehensive income (loss)                        (2,199)               446
                                                    -------------     --------------
Other comprehensive income (loss) for 
 the Period (net of tax)                                    6,595             (1,339)
                                                    -------------     --------------
Total comprehensive income for the Period                 817,967            601,979
                                                    =============     ==============
Profit for the Period attributable to:            
 Owners of the Company                                    630,502            512,529
 Non-controlling interests                                180,870             90,789
                                                    -------------     --------------
                                                          811,372            603,318
                                                    =============     ==============
Total comprehensive income attributable to:            
 Owners of the Company                                    633,698            511,640
 Non-controlling interests                                184,269             90,339
                                                    -------------     --------------
                                                          817,967            601,979
                                                    =============     ==============
Earnings per share - Basic and diluted     3       Rmb14.52 cents     Rmb11.80 cents
                                                    =============     ==============


CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
                                                           As at              As at
                                                       March 31,       December 31,
                                                            2015               2014
                                                         Rmb'000            Rmb'000
                                                      (Unaudited)          (Audited)
                                                    -------------     --------------
Non-current assets                                    15,415,818         15,609,023
Current assets                                        48,218,847         35,745,721
Current liabilities                                   36,847,629         28,680,080
                                                    -------------     --------------
Net current assets                                    11,371,218          7,065,641
                                                    -------------     --------------
Total assets less current liabilities                 26,787,036         22,674,664
                                                    -------------     --------------
Non-current liabilities                                4,839,447          1,545,042
                                                    -------------     --------------
                                                      21,947,589         21,129,622
                                                    =============     ==============
Capital and Reserves            
Share capital                                          4,343,115          4,343,115
Reserves                                              13,292,409         12,658,711
                                                    -------------     --------------
Equity attributable to owners of the Company          17,635,524         17,001,826
Non-controlling interests                              4,312,065          4,127,796
                                                    -------------     --------------
                                                      21,947,589         21,129,622
                                                    =============     ==============


CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                                               For the three months ended March 31,
                                                            2015               2014
                                                         Rmb'000            Rmb'000
                                                      (Unaudited)        (Unaudited)
                                                    -------------     --------------
Net cash (used in) from operating activities          (3,651,031)           772,942
Net cash used in investing activities                   (148,839)            (6,108) 
Net cash from (used in) financing activities           3,870,605           (483,191)
                                                    -------------     --------------
Net increase in cash and cash equivalents                 70,735            283,643
Cash and cash equivalents at beginning of the 
 Period                                                3,301,722          1,806,981
                                                    -------------     --------------
Cash and cash equivalents at end of the Period         3,372,457          2,090,624
                                                    =============     ==============

Notes:

1.   REVENUE

An analysis of the Group's revenue, net of discounts and taxes, for the Period is as followed:
                                                 For the three months ended March 31,
                                                            2015               2014
                                                         Rmb'000            Rmb'000
                                                      (Unaudited)        (Unaudited)
                                                    -------------     --------------
Toll operation revenue                                 1,019,296            970,699
Toll related operation revenue:         
Service area businesses revenue (mainly 
 sales of goods)                                         411,219            544,434
Advertising business revenue                              10,389             25,196
Others                                                    15,454             11,460
Securities operation revenue:         
Commission income from securities operation              656,345            326,087
Interest income from securities operation                357,695            140,234
                                                    -------------     --------------
Total                                                  2,470,398          2,018,110
                                                    =============     ==============

2.   OTHER INCOME

                                                 For the three months ended March 31,
                                                            2015               2014
                                                         Rmb'000            Rmb'000
                                                      (Unaudited)        (Unaudited)
                                                    -------------     --------------
Interest income on bank balances, entrusted
  loan receivables and financial products 
  investment                                              13,123             16,113
Rental income                                             25,860             26,755
Handling fee income                                          287                260
Towing income                                              2,120              2,349
Exchange (loss) gain, net                                     (9)                 2
Others                                                     7,486              2,850
                                                    -------------     --------------
Total                                                     48,867             48,329
                                                    =============     ==============

3.   EARNINGS PER SHARE

The calculation of the basic earnings per share is based on profit for the Period attributable to owners 
of the Company of Rmb630,502,000 (corresponding period of 2014: Rmb512,529,000 ) and 
the 4,343,114,500 (2014: 4,343,114,500) ordinary shares in issue during the Period.

Diluted earnings per share presented is the same as basic earnings per share since there were no 
potential ordinary shares outstanding during both periods.

BUSINESS REVIEW

In the first quarter of 2015, the growth rate of China's economy fell due to increased downward pressure. 
Macro regulatory policies continued to be supportive and the national economy remained steady with a 
year-on-year increase of 7.0% in GDP in the first quarter. In Zhejiang Province, economic growth has 
picked up on a quarter-on-quarter basis since last year, as a number of economic indicators including 
exports and fixed asset investments recorded decent growth rates, and the province's GDP in the first 
quarter of this year rose 8.2% year-on-year. 

During the Period, as Zhejiang Province's economy steadily improved, traffic volume on the Group's 
expressways continued to witness decent organic growth. In addition, there was active trading volume 
in the domestic stock market. As a result, income from the Group's overall operations increased 23.4% 
year-on-year. Total income reached Rmb2,564.89 million, of which Rmb1,054.50 million was generated 
from the three major expressways operated by the Group, representing an increase of 5.0% year-on-year 
and 41.1% of the total income; Rmb439.69 million was from the Group's toll road-related businesses, 
representing a decrease of 24.7% year-on-year and 17.2% of the total income; and Rmb1,070.70 million 
was from the securities business of the Group, representing an increase of 118.2% year-on-year and 
41.7% of the total income.

Toll Road Operations

The Group's three expressways maintained solid organic growth in traffic volume, with strong growth 
rates recorded in January and February though growth rate fell back somewhat in March. During the 
Period, the Group's three expressways, the Shanghai-Hangzhou-Ningbo Expressway, the Shangsan 
Expressway and the Jinhua Section of the Ningbo-Jinhua Expressway recorded organic growth of 5.7%, 
8.5% and 10.8%, respectively in traffic volume. The Group's three expressways recorded different 
growth rates  because they are located in different regions. Among these expressways, the Jinhua 
Section of the Ningbo-Jinhua Expressway continued to see robust organic growth in traffic volume 
as a result of the rapid economic development in Yiwu and nearby regions, as well as a rapid 
increase in small truck ownership in Yiwu.

In addition, the construction on the Hangzhou Airport Road started on April 15, 2014, has resulted 
in a truck traffic restriction for 23.7km on the Group's Shanghai-Hangzhou-Ningbo Expressway. As 
a result, toll income from the Shanghai-Hangzhou-Ningbo Expressway decreased by Rmb15.21 million, 
despite our efforts to open a four-hour window for trucks to pass through every day. Also, toll 
income was negatively affected by the opening of Qianjiang Road (not operated by the Group) on 
April 16, 2014, resulting in a decrease of Rmb5.4 million in toll income from the 
Shanghai-Hangzhou-Ningbo Expressway.

Taking all the factors stated above into account, the average daily traffic volume in full-trip 
equivalents along the Shanghai-Hangzhou-Ningbo Expressway was 45,080 during the Period, representing 
an increase of 5.8% year-on-year. In particular, the average daily traffic volume in full-trip 
equivalents along the Shanghai-Hangzhou section of the Shanghai-Hangzhou-Ningbo Expressway was 
42,586, representing an increase of 2.5% year-on-year, and that along the Hangzhou-Ningbo Section 
was 47,023, representing an increase of 8.4% year-on-year. Average daily traffic volume in full-trip 
equivalents along the Shangsan Expressway was 25,442, representing an increase of 12.3% year-on-year. 
Average daily traffic volume in full-trip equivalents along the Jinhua Section of the Ningbo-Jinhua 
Expressway was 17,181, representing an increase of 15.6% year-on-year.

During the Period, total toll income from the 248km Shanghai-Hangzhou-Ningbo Expressway, the 142km 
Shangsan Expressway and the 70km Jinhua Section of the Ningbo-Jinhua Expressway was 
Rmb1,054.50 million, representing an increase of 5.0% year-on-year. Toll income from the 
Shanghai-Hangzhou-Ningbo Expressway was Rmb732.10 million, representing an increase of 
2.7% year-on-year; toll income from the Shangsan Expressway was Rmb245.94 million, representing an 
increase of 10.3% year-on-year. Toll income from the Jinhua Section of the Ningbo-Jinhua Expressway was 
Rmb76.46 million, representing an increase of 12.3% year-on year.

Toll Road-Related Business Operations

The Company operates certain toll road-related businesses along its expressways through its 
subsidiaries and associated companies, including gas stations, restaurants and shops in service areas, 
as well as advertising at expressway interchanges and external road maintenance.

During the Period, due to the impact from the temporary closure of the Bei'an Service Area to the 
north of the Hangzhou Bay Bridge for renovation as well as increased competition from new service areas 
nearby, the income from service areas excluding gas stations along the Group's expressways did not 
have significant change compared to that of last year.

In addition, due to a clean-up campaign of billboards along all expressways in Zhejiang Province, 
the advertising business of the Group's subsidiaries continued to shrink to expressway interchanges, 
toll stations and service areas, resulting in a substantial decline in advertising revenue.

During the Period, the Group's external road maintenance projects brought additional income. 
However, continuous cuts on the price of domestic refined oil products negatively affected overall income 
of the Group's toll road-related businesses. During the Period, income from toll road 
related operations was Rmb439.69 million, representing a decrease of 24.7% year-on-year.

Securities Business

During the Period, the average brokerage commission rate for Zheshang Securities Co., Ltd. ("Zheshang 
Securities", a 70.83% owned subsidiary of Zhejiang Shangsan Expressway Co., Ltd. which in turn is a 
subsidiary of the Company) saw a continuous downward trend as a result of intensified competition in 
the securities industry and relaxed controls on commissions. However, total trading volume on the 
Shanghai and Shenzhen stock markets increased 244.7% year-on-year due to the revival of a bullish 
domestic securities market. During the Period, the brokerage business of Zheshang Securities saw a 
substantial increase in trading volume and posted a year-on-year increase of 147.3% in brokerage 
commission income.

In addition, while accelerating the development of each business segment, Zheshang 
Securities has been focusing on major understakings, building up businesses with competitive strengths, 
exploring innovative businesses, adjusting and optimizing its diversified business structure, and 
constantly working to streamline its income and profit structure. Though income from investment 
banking declined during the Period, income from margin financing and securities lending as well 
as asset management recorded substantial year-on-year increases.

Meanwhile, Zheshang Securities' IPO application on the Shanghai Stock Exchange was accepted by the 
China Securities Regulatory Commission in May, 2013. Zheshang Securities remains on the wait list for 
an IPO.

During the Period, Zheshang Securities' total operating income was Rmb1,070.70 million, representing 
an increase of 118.2% year-on-year, of which brokerage commission income rose 103.5% year-over-year to 
Rmb713.01 million, and interest income from the securities business was Rmb357.69 million, 
representing an increase of 155.1%. Moreover, securities investment gains of Zheshang Securities 
included in the condensed consolidated statements of profit or loss and other comprehensive income 
of the Group was Rmb74.46 million during the Period (corresponding period of 2014: gains of 
Rmb17.41 million).

Long-Term Investments

Zhejiang Expressway Petroleum Development Co., Ltd., (a 50% owned associate company of the Company) 
recorded income of Rmb1,183.71 million, representing a decrease of 25.2% year-on-year, as a result of 
continuous cuts on the price of domestic refined oil products. During the period, net 
profit of the associate company was Rmb3.96 million (corresponding period of 2014: net profit of 
Rmb4.19 million).

Zhejiang Shaoxing Shengxin Expressway Co (a 50% owned joint venture of the Company) operates the 
73.4km long Shaoxing Section of the Ningbo-Jinhua Expressway. During the Period, the average daily traffic 
volume in full-trip equivalents was 14,099, representing an increase of 7.13% year-on-year. 
Toll income during the Period was Rmb72.33 million. However, due to increased road maintenance expenses 
and its relatively heavy financial burden, the joint venture reported a loss of 
Rmb14.89 million during the Period (corresponding period of 2014: loss of Rmb14.98 million).

During the Period, the income of Zhejiang Communications Investment Group Finance Co., Ltd (a 35% owned 
associate company of the Company) was mainly derived from fees and commissions from providing financial 
services, including arranging loans and receiving deposits, for the subsidiaries of Zhejiang 
Communications Investment Group Co., Ltd. During the Period, this associate company realized a net 
profit of Rmb48.15 million (corresponding period of 2014: net profit of Rmb54.44 million).

FINANCIAL ANALYSIS

Liquidity and financial resources

As at March 31, 2015, current assets of the Group amounted to Rmb48,218.85 million in aggregate 
(December 31, 2014: Rmb35,745.72 million), of which bank balances and cash accounted for 8.6% 
(December 31, 2014: 11.4%), bank balances held on behalf of customers accounted for 46.1% 
(December 31, 2014: 46.4%), held for trading investments accounted for 10.1% (December 31, 2014: 5.9%) 
and loans to customers arising from margin financing business accounted for 28.1% 
(December 31, 2014: 23.9%). Current ratio (current assets over current liabilities) of the Group 
as at March 31, 2015 was 1.3 (December 31, 2014: 1.2). Excluding the effect of the customer deposits 
arising from the securities business, the resultant current ratio of the Group (current assets less 
bank balances held on behalf of customers over current liabilities less balance of accounts payable 
to customers arising from securities business) was 1.8 (December 31, 2014: 1.6).

The amount of held for trading investments of the Group as at March 31, 2015 was Rmb4,880.20 million 
(December 31, 2014: Rmb2,124.74 million), of which 93.2% was invested in bonds, 4.4% was invested in 
stocks, and the rest was invested in open-end equity funds.

During the Period, net cash flow used in the Group's operating activities amounted to Rmb3,651.03 million. 
Excluding the effect of increase of loans to customers arising from margin financing business of Zheshang 
Securities, the resultant net cash inflow generated from operating 
activities amounted to Rmb1,345.38 million.

The Directors do not expect the Company to experience any problems with liquidity and financial 
resources in the foreseeable future.

Borrowings and solvency

As at March 31, 2015, total liabilities of the Group amounted to Rmb41,687.08 million (December 31, 2014: 
Rmb30,225.12 million), of which 0.6% was bank borrowings, 11.3% was bonds payable, 21.4% was financial 
assets sold under repurchase agreements and 53.2% was accounts payable to customers arising from 
securities business.

As at March 31, 2015, the Group's interest-bearing borrowings totaled Rmb6,306.65 million, representing 
159.2% increase compared to that as at December 31, 2014. The borrowings comprised of domestic commercial 
bank loans of Rmb250.00 million, subordinated bonds of Rmb3,200.00 million, corporate bonds of 
Rmb1,500.00 million and beneficial certificates of Rmb1,356.65 million. 74.5% of the interest-bearing 
borrowings is not payable within one year.

Total interest expenses for the Period amounted to Rmb59.31 million, of which capitalized interest amounted 
to Rmb2.46 million, while profit before interest and tax amounted to Rmb1,145.85 million. The interest 
cover ratio (profit before interest and tax over interest expenses) stood at 19.3 times (corresponding 
period of 2014: 39.1 times).

As at March 31, 2015, the asset-liability ratio (total liabilities over total assets) was 65.5% 
(December 31, 2014: 58.9%). Excluding the effect of customer deposits arising from the securities 
business, the resultant asset-liability ratio (total liabilities less balance of accounts payable 
to customers arising from securities business over total assets less bank balances held on behalf 
of customers) of the Group was 47.1% (December 31, 2014: 39.3%).

Capital structure

As at March 31, 2015, the Group had Rmb21,947.59 million in total equity, Rmb38,616.23 million in 
fixed-rate liabilities, Rmb250.00 million in floating-rate liabilities, and Rmb2,820.85 million in 
interest-free liabilities, representing 34.5%,60.7%,0.4% and 4.4% of the Group's total capital, 
respectively. The gearing ratio, which was computed by dividing the total liabilities less balance 
of accounts payable to customers arising from securities business by total equity, was 88.9% as 
at March 31, 2015 (December 31, 2014: 64.7%).

OUTLOOK

Currently, China's economy is moving into a "new normal" as it downshifts from rapid growth to fast 
albeit more moderate growth. It is anticipated that the Group's toll road business, which is closely tied 
to the macro-economic development, will see steady growth in total traffic volume in the first half of 
2015, but the rate of organic growth is expected to slow down.

Though the negative impact on the Shanghai-Hangzhou-Ningbo Expressway as a result of the opening of 
the Jiaxing-Shaoxing Bridge has gradually stabilized, the Dongyang-Yongkang Expressway nearby is scheduled 
to open to traffic in May 2015 and is expected to have a diversion impact on traffic for certain sections 
of the Group's expressways. The Company will closely monitor and conduct timely research and analysis on 
surrounding new road networks as well as to improve road signage to attract more traffic to the Group's 
expressways, thereby minimizing the loss caused by traffic 
diversions. 

Following the launch of the Shanghai-Hong Kong Stock Connect program, it is expected that a series of 
favorable policies will be launched to promote the development of the capital markets in China, 
including an expansion of the Shanghai-Hong Kong Stock Connect program and the launch of the 
Shenzhen-Hong Kong Stock Connect program, which will present new opportunities for the Group's 
securities business. Meanwhile, Zheshang Securities will pay close attention to new market policies, 
and seek new profit drivers through continuously innovating its business. In addition, while remained 
focused on reinforcing cost and risk controls, Zheshang Securities will look to push forward its 
listing process on the Shanghai Stock Exchange and promote a sustainable and healthy development of 
its various lines of businesses.

At present, the Company is actively developing its strategic transformation plan. The Company's 
management will pay close attention to change in the business environment and relevant policies to 
adjust its business strategies in a timely manner based on the Company's needs, and will continue to 
improve the Company's core expressways business and optimize the securities and finance business. The 
Group will strive to find suitable investment projects with manageable risks and nurture management 
capabilities in our diversified operations in order to support the long-term and sustainable 
development of the Company, creating value for shareholders.


                                                                                By Order of the Board
                                                                                    ZHAN Xiaozhang
                                                                                         Chairman


Hangzhou, the PRC, May 18, 2015

As at the date of this announcement, the executive directors of the Company are: Mr. ZHAN Xiaozhang, 
Ms. LUO Jianhu and Mr. DING Huikang; the non-executive directors of the Company are: Mr. WANG Dongjie, 
Mr. DAI Benmeng and Mr. ZHOU Jianping; and the independent non-executive directors of 
the Company are: Mr. ZHOU Jun, Mr. PEI Ker-Wei and Ms. LEE Wai Tsang, Rosa.