Zhejiang Expressway : Announces 2014 First Quarterly Results

[FOR IMMEDIATE RELEASE]

(Hong Kong, May 15, 2014) - Zhejiang Expressway Co., Ltd. ("Zhejiang Expressway" or the "Company") (HKEx code: 576; LSE code: ZHEH; ADR code: ZHEXY) today announced the unaudited consolidated operating results of the Company and its subsidiaries (collectively the "Group") for the three months ended May 31, 2014 (the "Period").
During the Period, revenue of the Group increased 15.9% year-on-year to Rmb2,018.11 million. Profit attributable to owners of the Company amounted to Rmb512.53 million, representing an increase of
18.7%. Basic and diluted earnings per share were Rmb11.80 cents (the corresponding period in 2013
(restated): Rmb9.94 cents).

During the Period, the Group's total income increased by 15.9% compared with the corresponding period of last year, realizing a total income of Rmb2,079.06 million generated from various income sources, of which Rmb1,004.14 million was generated from the three major expressways that are operated by the Group, representing an increase of 7.4% from the corresponding period of 2013 and
48.3% of total income; and Rmb584.26 million was generated from the Group's toll road-related businesses, representing an increase of 20.2% from the corresponding period of 2013 and 28.1% of total income. The Group's securities business contributed income of Rmb490.66 million, representing an increase of 31.9% from the corresponding period of 2013 and 23.6% of total income.
In respect of the toll road operations, during the first quarter, China experienced a slowdown in economic growth and the total volume of exports from Zhejiang Province declined. As a result, the organic growth of traffic volume of freight vehicles and container trucks on the Group's expressways slowed down. The average daily traffic volume in full-trip equivalents along the Group's Shanghai-Hangzhou-Ningbo Expressway was 42,611 during the Period, representing an increase of
2.56% from the corresponding period of 2013. Average daily traffic volume in full-trip equivalents
along the Shangsan Expressway was 22,648 during the Period, representing an increase of 28.43% from the corresponding period of 2013. Average daily traffic volume in full-trip equivalents along the Jinhua Section of the Ningbo-Jinhua Expressway was 14,865 during the Period, representing an increase of
16.35% from the corresponding period of 2013.
As for the toll road-related business operations, with the opening of the Jiaxing-Shaoxing Bridge, the service areas along Shangsan Expressway benefited from the increase in traffic volume. The total income from service areas along the Shangsan Expressway grew significantly. However, there was a negative impact on income from service areas along the Shanghai-Hangzhou-Ningbo Expressway, which contributes a larger percent of income to the Group. Although the overall income from service
areas decreased slightly, there was a solid increase in sales of refined oil products. Income from toll road-related businesses totaled Rmb584.26 for the Period, representing an increase of 20.2% from the corresponding period of 2013.
With regard to the securities business, during the Period, stock markets in China continued to see an increase in trading activity, with trading volumes increasing by 9.83% compared with the corresponding period of last year. Although the average commission rate declined slightly, income of the Group's brokerage business rose moderately as a result of higher trading volumes. During the Period, total operating income of Zheshang Securities Co., Ltd. ("Zheshang Securities") was Rmb490.66 million, an increase of 31.9% from the corresponding period of 2013.

The drop in growth rate of both imports and exports adversely affected Zhejiang Province's economy in the first quarter. However, market data in March started to show that the main economic indicators have stabilized and possibly bottomed. It is expected Zhejiang Province's economy will maintain steady growth in the second quarter of the current year. For the whole year, the economy is expected to "open low and grow steadily". As such, the organic growth in traffic volume on the Group's expressways is expected to increase moderately.
In addition, with the establishment of the Shanghai-Hong Kong Stock Connect, which is mutual stock market access between Shanghai and Hong Kong, and the adjustment of the monetary policy in China, it is believed that these developments will be beneficial to the Group's securities businesses. At the same time, Zheshang Securities is striving to explore innovative businesses and broaden income sources in a bid to facilitate the comprehensive development of all businesses, and to facilitate its listing process on the Shanghai Stock Exchange.

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About Zhejiang Expressway Co., Ltd

Established in 1997, Zhejiang Expressway Co., Ltd. (HKEx code: 576; LSE code: ZHEH; ADR code: ZHEXY) is regarded by the Zhejiang Provincial Government as its main enterprise for investment, development, operation, maintenance and management of high-grade roads in Zhejiang Province. The Company and its subsidiaries have concession rights to operate the Shanghai-Hangzhou-Ningbo Expressway and the Shangsan Expressway for a period of 30 years, as well as the Jinhua Section of the Ningbo-Jinhua Expressway for a period of 25 years. The Company and its subsidiaries also carry out
certain ancillary businesses such as automobile servicing, operation of gas stations and billboard

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advertising along expressways, as well as the securities business.

Fax : (86571) 8795 0329

Jung Chang
Tel : (852) 9226 6258
Email : jchang@christensenir.com
Ricky Tan
Tel : (852) 6605 9808
Email : rtan@christensenir.com

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