Shenzhen International : Overseas Regulatory Announcement - Third Quarterly Report of 2016 of Shenzhen Expressway Company Limited

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.

(incorporated in Bermuda with limited liability)

The document attached hereto is the Third Quarterly Report of 2016 of Shenzhen Expressway Company Limited (a subsidiary of the Company, the A shares of which are listed on the Shanghai Stock Exchange and the H shares of which are listed on The Stock Exchange of Hong Kong Limited) which has been released to the Shanghai Stock Exchange.

The document is originally prepared in Chinese. In case of any inconsistency between the Chinese version and the English version, the Chinese version shall prevail.

Hong Kong, 27 October 2016

As at the date of this announcement, the board of directors of the Company consists of Messrs. Gao Lei, Li Hai Tao, Zhong Shan Qun, Liu Jun and Li Lu Ning as executive directors, Dr. Yim Fung, JP as non-executive director and Messrs. Leung Ming Yuen, Simon, Ding Xun and Nip Yun Wing as independent non-executive directors.

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.

深 圳 高 速 公 路 股 份 有 限 公 司

(a joint stock limited company incorporated in the People's Republic of China with limited liability)

This announcement is made pursuant to the disclosure obligation under Rules 13.09(2) and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and related requirements.

This quarterly report is prepared in accordance with relevant regulations of the China Securities Regulatory Commission on disclosure of information in quarterly reports for listed companies. The financial information set out in this quarterly report has not been audited. Shareholders of the Company and public investors should exercise caution when trading in the shares of the Company.

1. IMPORTANT NOTICE

2. The board of directors, the supervisory committee and the directors, the supervisors, the senior management of Shenzhen Expressway Company Limited (the "Company") confirm the truthfulness, accuracy and completeness of the content of this quarterly report and that there are no false representations or misleading statements contained in or material omissions from this report, and assume several and joint legal responsibility.

3. The director who was unable to attend the board meeting in which this quarterly report was approved in person:

   Name of the director unable to attend the board meeting	Position of the director unable to attend the board meeting	Reason for the absence	Name of the director appointed to vote
   ZHANG Yang	Director	Business reason	HU Wei
   LIN Chu Chang	Independent Non-executive Director	Business reason	AU Sing Kun

4. Mr. Hu Wei, Chairman, Ms. Gong Tao Tao, Financial Controller, and Mr. Sun Bin, General Manager of Finance Department, confirm the truthfulness, accuracy and completeness of the financial statements contained in this quarterly report.

5. The financial statements contained in the Third Quarterly Report of 2016 (the "Report") of the Company for the three months ended 30 September 2016 (the "Reporting Period" or "Period") have not been audited.

6. Unless otherwise stated, the currency of the amounts stated in this announcement is in RMB.

7. Unless otherwise stated, the abbreviation of the highways/projects operated, invested and managed by the Company and the investee companies of the Company in the Report shall have the same meaning as defined in Interim Report 2016 of the Company.

8. PRINCIPAL FINANCIAL DATA AND CHANGE IN SHAREHOLDERS

9. Principal financial data

10. Unit: RMB

    As at 30 Sep 2016	As at 31 Dec 2015	Change
    Total assets	31,789,794,011.53	31,670,655,088.41	0.38 %
    Net assets attributable to owners of the Company	12,574,484,063.42	12,368,892,973.17	1.66 %

    Jan~Sep 2016	Jan~Sep 2015	Change
    Net cash flows from operating activities	1,509,694,215.04	977,849,620.96	54.39%

    Jan~Sep 2016	Jan~Sep 2015	Change
    Revenue	3,179,809,568.00	2,438,282,427.64	30.41%
    Net profit attributable to owners of the Company	946,755,266.61	852,922,810.62	11.00%
    Net profit attributable to owners of the Company - excluding non-recurring items	835,776,754.47	776,395,460.07	7.65%
    Return on equity - weighted average(%)	7.57	7.24	Increased 0.33 percentage point
    Earnings per share - basic	0.434	0.391	11.00%
    Earnings per share - diluted	0.434	0.391	11.00%

    Non-recurring items and amounts

    Unit: RMB

    Non-recurring items	Jul ~ Sep 2016	Jan ~ Sep 2016	Illustration
    Profit from entrusted operation management services	8,429,433.97	59,050,415.10	Profits from entrusted management services provided to Coastal Company and Longda Company in current period.
    Investment income from transfer of subsidiaries	-	48,535,491.48	Earnings arising from the transfer of the entire equity interest and creditors' right of Guizhou Pengbo and 51% equity interest of Guizhou Hengtongli.
    Gains arising from the remaining equity interest re-calculated per fair value after cease of control in subsidiaries	-	16,673,414.89	Gains arising from the remaining 49% equity interest of Guizhou Hengtongli re-calculated per fair value.
    Amortisation of compensation provided by concession grantor	5,441,911.73	15,962,951.79	The amortisation of compensation to Yanpai Expressway and Yanba Expressway provided by concession grantors recognised according to traffic volume method for the Period which is disclosed as a deduction of the amortisation of the related concession intangible assets.
    Investment income arising from investment financing products	5,219,622.08	8,460,614.59
    The interest income arising from the compensation receivables of toll collection adjustment of Meiguan Expressway and Three Projects.	1,164,545.20	3,560,217.20
    Loss arising from changes in fair value of foreign exchange swaps	-2,196,680.45	-2,196,680.45	Loss arising from changes in fair value of foreign exchange swaps in relation to overseas bonds amounting to USD300 million for hedging exchange rate risk as recognised at the end of the Reporting Period
    Other non-operating income and expenses other than the above items	441,162.51	1,194,169.55
    Income tax effect	-3,773,654.06	-21,480,751.05
    Effect on minority interest (after tax)	-77,207.29	-18,781,330.96
    Total	14,649,133.69	110,978,512.14