2018 First Quarterly Results Announcement

ZHEJIANG EXPRESSWAY CO., LTD.

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

ZHEJIANG EXPRESSWAY CO., LTD.
(A joint stock limited company incorporated in the People's Republic of China with limited liability)
(Stock code: 0576)

2018 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, 2018 (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 2017:

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
	For the three months ended March 31,
	2018		2017
	Rmb'000		Rmb'000
	(Unaudited)		(Unaudited)
	-----------------		----------------
Revenue	2,255,435		2,338,312
Operating costsOperating costs	(1,026,094)		(1,118,826)
	-----------------		----------------
Gross profit	1,229,341		1,219,486
Securities investment gains	111,401		136,766
Other income and gains and losses	62,515		51,462
Administrative expenses	(15,029)		(15,474)
Other expenses	(11,461)		319
Share of profit of associates	50,013		46,064
Share of profit of a joint venture	5,293		1,677
Finance costs	(182,314)		(176,159)
	---------------		--------------
Profit before tax	1,249,759		1,264,141
Income tax expense	(272,190)		(290,393)
	---------------		--------------
Profit for the Period	977,569		973,748
Profit for the Period attributable to:
Owners of the company	822,255		792,735
Non-controlling interests	155,314		181,013
	---------------		--------------
	977,569		973,748
Other comprehensive expense
Items that may be reclassified subsequently to profit or loss: Available-for-sale financial assets:       â€“  Fair value gain during the Period	–		44,319
– Reclassification adjustments for cumulative gain upon disposal	–		(47,970)
Share of differences arising on translation	(1,975)		(45)
Income tax relating to items that may be reclassified subsequently	–		913
	-------------		-------------
Other comprehensive expense for the Period, net of income tax	(1,975)		(2,783)
	--------------		--------------
Total comprehensive income for the Period	975,594		970,965
	========		========
Total comprehensive income attributable to:
Owners of the Company	821,328		791,284
Non-controlling interests	154,266		179,681
	------------		------------
	975,594		970,965
	=======		=======
Earnings per share
Basic (Rmb cents)	18.93		18.25
	=======		=======
Diluted (Rmb cents)	16.78		18.25
	======		======

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
	As at March 31, 2018		As at December 31, 2017
	Rmb'000		Rmb'000
	(Unaudited)		(Audited)
	--------------------		------------------
Non-current assets	19,370,045		19,698,271
Current assets	55,968,039		53,952,249
Current liabilities	34,606,353		32,421,081
	--------------------		------------------
Net current assets	21,361,686		21,531,168
	--------------------		------------------
Total assets less current liabilities	40,731,731		41,229,439
	--------------------		------------------
Non-current liabilities	10,551,786		12,025,088
	--------------------		------------------
	30,179,945		29,204,351
	===========		=========
Capital and reserves
Share capital	4,343,115		4,343,115
Reserves	17,132,713		16,311,385
	-------------------		-----------------
Equity attributable to owners of the Company	21,475,828		20,654,500
Non-controlling interests	8,704,117		8,549,851
	-------------------		-----------------
	30,179,945		29,204,351
	=========		========
*Note: The Group has adopted HKFRS 9 from January 1, 2018. As permitted by the transitional provisions of HKFRS 9, the Group elected not to restate comparative figures. Any adjustments to the carrying amounts of financial assets and liabilities at the date of transition were recognised in equity as at January 1, 2018.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
	For the three months ended March 31,
	2018		2017
	Rmb'000		Rmb'000
	(Unaudited)		(Unaudited)
	---------------		-------------
Net cash from (used in) operating activities	1,477,265		(1,144,645)
Net cash (used in) from investing activities	(1,341,105)		1,499,420
Net cash from (used in) financing activities	1,707,622		(3,448,141)
	------------------		----------------
Net increase (decrease) in cash and cash equivalents	1,843,782		(3,093,366)
Cash and cash equivalents at beginning of the Period	5,588,814		7,198,745
Effect of foreign exchange rate changes	(1,975)		(45)
	---------------		-------------
Cash and cash equivalents at end of the Period	7,430,621		4,105,334
	=========		========

By Order of the Board         
Zhejiang Expressway Co., Ltd.
YU Zhihong               
 Chairman                

Hangzhou, the PRC, April 27, 2018

As at the date of this announcement, the Chairman of the Company is Mr. YU Zhihong; the executive Directors of the Company are: Mr. CHENG Tao and Ms. LUO Jianhu; the other non-executive Directors of the Company are: Mr. DAI Benmeng, Mr. YU Qunli and Mr. YU Ji; and the independent non-executive Directors of the Company are: Mr. PEI Ker-Wei, Ms. LEE Wai Tsang, Rosa and Mr. CHEN Bin.