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HomeAll newsMost read newsBusiness Leaders Biography 
Birthday : 02/16/1936
Place of birth : New York (New York) - USA
Biography : Mr. Carl C. Icahn is Chairman at CVR Refining GP LLC, CVR Refining LP, CVR Energy, Inc., Tropicana E
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ZHEJIANG EXPRESSWAY : LD - 2016 Interim Report

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08/31/2016 | 10:00am CEST
    Zhejiang Expressway Co., Ltd

    Achieve Growth

    Through Innovation and Prudence

    In the first half of 2016, as Zhejiang Province's economy steadily improved,
    traffic volume on the Group's expressways continued to register healthy organic
    growth, the Group's toll revenue registered an increase of 6.6% year-on-year.
    However, due to weak domestic market sentiment and lackluster trading on
    domestic stock markets, though income from Zheshang Securities' investment
    banking business experienced significant growth, other business segments of
    Zheshang Securities recorded varied levels of income decrease year-on-year.
    Despite that, Zheshang Securities still outperformed the market in general. In
    conclusion, although the Company saw a year-on-year decrease in profit due to
    various macro factors, all business segments within the Group remained
    competitive.

    In the second half of the year, in response to the dynamic change of internal
    and external environment, the Company's management will closely monitor the
    latest financial policy developments as well as evolving market trends to
    better formulate future strategic development plans. The Group will look to
    expand its core expressway business by investing in and acquiring quality toll
    road assets to further enhance its core competencies while strengthening its
    securities business and seeking suitable investments and development projects
    in order to enlarge the asset scale of its core businesses and increase future
    profitability.

    Contents

    2016 Interim Results

    Business Review

    Financial Analysis

    Outlook

    Disclosure of Interests and Other Matters

    Condensed Consolidated Statement of Profit or Loss and Other Comprehensive
    Income

    Condensed Consolidated Statement of Financial Position

    Condensed Consolidated Statement of Changes in Equity

    Condensed Consolidated Statement of Cash Flows

    Notes to Condensed Consolidated Financial Statements

    Appendices

    Corporate Information

    Corporate Structure of the Group

    Financial Highlights

    Location Map of Expressways in Zhejiang Province

    2016 Interim Results

    The directors (the "Directors") of Zhejiang Expressway Co., Ltd. (the
    "Company") announced the unaudited consolidated operating results of the
    Company and its subsidiaries (collectively the "Group") for the six months
    ended June 30, 2016 (the "Period"), with the basis of preparation as stated in
    note 1 to the condensed consolidated financial statements set out below.

    During the Period, revenue for the Group was Rmb5,337.12 million, representing
    a decrease of 13.7% over the same period in 2015. Profit for the Period
    attributable to owners of the Company was Rmb1,368.21 million, representing a
    decrease of 8.5% year-on-year. Earnings per share for the Period was Rmb31.50
    cents (corresponding period in 2015 (Restated): Rmb34.43 cents).

    The Directors have recommended to pay an interim dividend of Rmb6 cents per
    share (corresponding period in 2015: Rmb6 cents), subject to shareholders'
    approval at the extraordinary general meeting of the Company to be held in due
    course.

    The interim report has not been audited or reviewed by the auditors but has
    been reviewed by the audit committee of the Company.

    Business Review

    During the first half of 2016, in response to the complex domestic and overseas
    environment and continuing downward economic pressure, China initiated a number
    of measures to expand its overall demand while accelerating the supply-side
    reform. The economy was stable for the most part and recorded a steady 6.7%
    year-on-year GDP growth. Meanwhile, Zhejiang Province's economy demonstrated
    decent growth momentum as it benefited from the continuous rapid growth of the
    tertiary industry and notable upgrades in its economic structure. Zhejiang
    Province's first-half GDP recorded a year-on-year increase of 7.7%, one
    percentage point higher than the national rate.

    As Zhejiang Province's economy steadily improved during the Period, traffic
    volume on the Group's expressways continued to register healthy organic growth.
    Revenue from the Group's overall operations decreased 13.7% year-on-year to
    Rmb5,337.12 million, of which Rmb2,537.81 million was generated by the four
    major expressways operated by the Group, representing an increase of 6.6%
    year-on-year and 47.6% of the total revenue. Revenue from the Group's toll
    road-related businesses was Rmb532.11 million, representing a decrease of 43.2%
    year-on-year and 10.0% of the total revenue. The Group's securities business
    contributed revenue of Rmb2,152.38 million, representing a decrease of 24.8%
    year- on-year and 40.3% of the total revenue.

    A breakdown of the Group's revenue for the Period is set out below:

                                             For the six months ended June 30,
                                                                              
                                                         2016             2015
                                                                              
                                                      Rmb'000          Rmb'000
                                                                              
    Toll revenue                                                              
                                                                              
    Shanghai-Hangzhou-Ningbo Expressway             1,620,279        1,500,205
                                                                              
    Shangsan Expressway                               537,800          496,312
                                                                              
    Jinhua section, Ningbo-Jinhua Expressway          160,198          159,848
                                                                              
    Hanghui Expressway                                219,529          223,488
                                                                              
    Toll road-related business revenue                                        
                                                                              
    Service areas                                     521,277          886,397
                                                                              
    Advertising                                        10,829           22,052
                                                                              
    External road maintenance                               -           28,436
                                                                              
    Securities business revenue                                               
                                                                              
    Commission and fee                              1,407,455        2,026,162
                                                                              
    Interest                                          744,925          835,709
                                                                              
    Other operation revenue                                                   
                                                                              
    Hotel operation                                    43,431            7,266
                                                                              
    Property sales                                     71,397                -
                                                                              
    Total revenue                                   5,337,120        6,185,875

    Toll Road Operations

    During the Period, driven by Zhejiang Province's notable economic developments
    in the tertiary services industry and decent growth in fixed asset investment,
    Zhejiang Province's economy maintained its growth momentum and traffic volume
    on the Group's expressways registered solid organic growth. The organic traffic
    volume growth for the Group's four expressways, namely the
    Shanghai-Hangzhou-Ningbo Expressway, the Shangsan Expressway, the Jinhua
    Section of the Ningbo-Jinhua Expressway and the Hanghui Expressway, were 8.3%,
    8.6%, 8.8% and 5.7%, respectively, with the varied rates of growth due to the
    different regions where the four expressways are located.

    During the Period, as Hangzhou's GDP in the first half of 2016 surged by 10.8%
    year-on-year, the transportation volume of the city and its surrounding areas
    saw substantial increase, which resulted in a significant increase in traffic
    volume along the Shanghai-Hangzhou-Ningbo Expressway. However, the opening of
    the Hangzhou Xiaoshan Airport Expressway and surrounding elevated highways in
    early May 2016 caused certain traffic volume diversion for the Qiantang River
    Second Bridge of the Hangzhou- Ningbo Expressway operated by the Group.

    Due to an increase in truck traffic volume, the overall traffic volume of the
    Shangsan Expressway was higher than expected during the Period.

    The Hangzhou-Jinhua-Quzhou Expressway had been closed due to construction for
    four months starting from June 2015, resulting in a temporary increase of
    traffic volume on the neighboring Jinhua Section of the Ningbo-Jinhua
    Expressway. The completion of construction in September 2015 caused the traffic
    volume of the Jinhua Section of the Ningbo-Jinhua Expressway to fall back
    significantly. In addition, the Dongyang-Yongkang Expressway was opened to
    traffic in July 2015 and caused a continuous diversion impact on traffic volume
    from the Jinhua Section of the Ningbo-Jinhua Expressway. As a result of these
    factors, there was a decrease in the overall traffic volume on the Jinhua
    Section of the Ningbo-Jinhua Expressway during the Period.

    The Hanghui Expressway registered lower organic growth in traffic volume during
    the Period, as a result of the sluggish regional economy in the surrounding
    areas. Concurrently, a section of the Hangzhou- Jinhua-Quzhou Expressway, which
    is not operated by the Group but runs parallel to the Hanghui Expressway, was
    reopened for traffic following construction, and certain sections of
    expressways running from Jiangxi to Hangzhou cancelled their truck height
    limits. As a result, a majority of long- distance trucks have returned to their
    original routes or chose alternative local roads, causing significant decreases
    in the truck traffic volume on the Hanghui Expressway, adversely impacting
    overall traffic volume on the section during the Period.

    During the Period, the average daily traffic volume in full-trip equivalents
    along the Group's Shanghai- Hangzhou-Ningbo Expressway was 49,807, representing
    an increase of 6.8% 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 48,987, representing an increase of
    10.7% year-on-year, and that along the Hangzhou-Ningbo Section was 50,392,
    representing an increase of 4.9% year-on- year. Average daily traffic volume in
    full-trip equivalents along the Shangsan Expressway was 27,131, representing an
    increase of 8.2% year-on-year. Average daily traffic volume in full-trip
    equivalents along the Jinhua Section of the Ningbo-Jinhua Expressway was
    17,661, representing a decrease of 1.1% year- on-year. Average daily traffic
    volume in full-trip equivalents along the Hanghui Expressway was 16,134,
    representing an increase of 4.2% year-on-year.

    During the Period, total toll revenue from the 248km Shanghai-Hangzhou-Ningbo
    Expressway, the 142km Shangsan Expressway, the 70km Jinhua Section of the
    Ningbo-Jinhua Expressway and the 122km Hanghui Expressway was Rmb2,537.81
    million, representing an increase of 6.6% year-on- year. Among which, toll
    revenue from the Shanghai-Hangzhou-Ningbo Expressway was Rmb1,620.28 million,
    representing an increase of 8.0% year-on-year; toll revenue from the Shangsan
    Expressway was Rmb537.80 million, representing an increase of 8.4%
    year-on-year; toll revenue from the Jinhua Section of the Ningbo-Jinhua
    Expressway was Rmb160.20 million, representing an increase of 0.2% year-on-
    year; and toll revenue from the Hanghui Expressway was Rmb219.53 million,
    representing a decrease of 0.2% year-on-year (on the same basis as last year).

    Toll Road-Related Business Operations

    The Company also operates certain toll road-related businesses along its
    expressways through its subsidiaries, including gas stations, restaurants and
    shops in service areas, as well as advertisements. Since May 2016, the Company
    has agreed to contract out the operation of several gas stations in its service
    areas to Zhejiang Expressway Petroleum Development Co., Ltd. For details,
    please refer to the Company's announcement "Continuing Connected Transactions
    in Relation to Contracting out Operation of Service Stations" dated May 27,
    2016.

    Zhejiang Province took action in 2014 to remove billboards from along sides of
    its expressways, which gradually narrowed most of the advertising business of
    the Group's subsidiary to expressway service areas. As a result, advertising
    income was substantially reduced within the Period. Additionally, during the
    Period, the overall income of the toll road-related business operations was
    adversely affected due to several reductions in the retail prices of domestics
    refined oil products. During the Period, revenue from toll road-related
    operations was Rmb532.11 million, representing a decrease of 43.2%
    year-on-year.

    Securities Business

    During the Period, due to weak domestic market sentiment, trading on domestic
    stock markets was lackluster. Trading volume on the Shanghai and Shenzhen stock
    markets decreased 52.9% year-on- year in total. Concurrently, there was a
    continued decline in average brokerage commission rate. As a result of these
    factors, during the Period, though income from Zheshang Securities' investment
    banking business experienced significant growth, other business segments of
    Zheshang Securities recorded varied levels of income decrease year-on-year.

    During the Period, Zheshang Securities recorded total operating revenue of
    Rmb2,152.38 million, a decrease of 24.8% year-on-year. Of which, commission and
    fee revenue declined 30.5% year-on-year to Rmb1,407.45 million, and interest
    revenue from the securities business was Rmb744.93 million, representing a
    decrease of 10.9% year-on-year. Moreover, during the Period, securities
    investment gains of Zheshang Securities included in the condensed consolidated
    statement of profit or loss and other comprehensive income of the Group was
    Rmb107.99 million (corresponding period of 2015: gains of Rmb324.65 million).

    Despite income from most of Zheshang Securities' businesses declining during
    the Period with the exception of its investment banking business, Zheshang
    Securities still outperformed the market in general. Zheshang Securities
    continued to develop all its businesses steadily, as its asset management
    business further expanded in scale while its investment banking business
    reported a new high in income amidst weak market sentiment. In addition,
    Zheshang Securities' IPO application to the Shanghai Stock Exchange was
    accepted by the China Securities Regulatory Commission in May, 2013, and it
    remains on the wait list for an IPO.

    Other Business Operations

    Other business income was mainly derived from hotel operations and sales of
    ancillary apartments, namely the Qiyu Apartments.

    Grand New Century Hotel, owned by Zhejiang Yuhang Expressway Co., Ltd. (a 51%
    owned subsidiary of the Company), realized revenue of Rmb43.43 million for the
    Period.

    Qiyu Apartments opened for sale on November 29, 2015. 151 flats were sold out
    during the Period and realized a sales revenue of Rmb71.40 million.

    Long-Term Investments

    Zhejiang Shaoxing Shengxin Expressway Co., Ltd. ("Shengxin Co", a 50% owned
    joint venture of the Company) operates the 73.4km Shaoxing Section of the
    Ningbo-Jinhua Expressway. During the Period, the average daily traffic volume
    in full-trip equivalents was 16,320, an increase of 13.7% year-on-year. Toll
    revenue during the Period was Rmb169.38 million. During the Period, the joint
    venture turned profitable for the first time and reported a net profit of
    Rmb0.20 million (corresponding period of 2015: net loss of Rmb30.47 million).

    During the Period, Zhejiang Communications Investment Group Finance Co., Ltd.
    (a 35% owned associate company of the Company), derived income mainly from
    interest, fees and commissions for providing financial services, including
    arranging loans and receiving deposits, for the subsidiaries of Zhejiang
    Communications Investment Group Co., Ltd., the controlling shareholder of the
    Company. During the Period, this associate company realized a net profit of
    Rmb49.92 million (corresponding period of 2015: net profit of Rmb78.49
    million).

    Human Resources

    During the Period, the Company actively revamped its human resource management,
    improved its remuneration and performance policy, and promoted the pegging of
    overall remuneration increase with the productivity of employees, thereby
    paving the way for increasing employees' remuneration. There was no significant
    change in other staff matters and assignment compared with the details
    disclosed in the Company's most recent annual report.

    Financial Analysis

    The Group adopts a prudent financial policy with an aim to provide shareholders
    of the Company with sound returns over the long term.

    During the Period, profit attributable to owners of the Company was
    approximately Rmb1,368.21 million, representing a decrease of 8.5% over the
    corresponding period of 2015, return on owners' equity was 8.1%, representing a
    decrease of 4.7% over the corresponding period of 2015, while earnings per
    share for the Company was Rmb31.5 cents.

    Liquidity and Financial Resources

    As at June 30, 2016, current assets of the Group amounted to Rmb52,249.47
    million in aggregate (December 31, 2015: Rmb54,359.48 million), of which bank
    balances and cash accounted for 7.3% (December 31, 2015: 9.7%), bank balances
    held on behalf of customers accounted for 42.9% (December 31, 2015: 49.8%),
    held for trading investments accounted for 13.5% (December 31, 2015: 6.9%) and
    loans to customers arising from margin financing business accounted for 14.7%
    (December 31, 2015: 19.4%). Current ratio (current assets over current
    liabilities) of the Group as at June 30, 2016 was 1.2 (December 31, 2015: 1.3).
    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 1.4
    (December 31, 2015: 1.8).

                                                       As at             As at
                                                                              
                                                    June 30,      December 31,
                                                                              
                                                        2016              2015
                                                                              
                                         Rmb'000 (Unaudited) Rmb'000 (Audited)
                                                                              
    Cash and Cash equivalents                                                 
                                                                              
    Rmb                                            3,498,769         4,935,103
                                                                              
    US$ in Rmb equivalent                             46,034            33,386
                                                                              
    HK$ in Rmb equivalent                              9,003            14,562
                                                                              
    Time deposit - Rmb                               275,000           270,000
                                                                              
    Held for trading investments - Rmb             7,040,990         3,761,224
                                                                              
    Available-for-sale investments - Rmb           1,213,642         1,032,750
                                                                              
    Total                                         12,083,438        10,047,025
                                                                              
    Rmb                                           12,028,401         9,999,077
                                                                              
    US$ in Rmb equivalent                             46,034            33,386
                                                                              
    HK$ in Rmb equivalent                              9,003            14,562

    The amount of held for trading investments of the Group as at June 30, 2016 was
    Rmb7,040.99 million (December 31, 2015: Rmb3,761.22 million), of which 96.9%
    was invested in bonds, 3.0% was invested in stocks, and the rest was invested
    in open-end equity funds.

    During the Period, net cash flow generated from the Group's operating
    activities amounted to Rmb1,804.42 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 June 30, 2016, total liabilities of the Group amounted to Rmb49,042.35
    million (December 31, 2015: Rmb51,893.11 million), of which 6.0% was bank and
    other borrowings, 2.0% was short- term financing note, 18.4% was bonds payable,
    19.4% was financial assets sold under repurchase agreements, and 45.7% was
    accounts payable to customers arising from securities business.

    As at June 30, 2016, total interest-bearing borrowings of the Group amounted to
    Rmb12,924.69 million, representing a decrease of 11.4% compared to that as at
    December 31, 2015. The borrowings comprised outstanding balances of domestic
    commercial bank loans of Rmb1,904.69 million, borrowings from other domestic
    financial institution of Rmb450.00 million, entrusted loans from Communications
    Group of Rmb570.00 million, short-term financing note of Rmb1.00 billion,
    beneficial certificates of Rmb1.30 billion, subordinated bonds of Rmb6.20
    billion and corporate bonds of Rmb1.50 billion. Of the interest-bearing
    borrowings, 33.8% was not payable within one year.

                                                    Maturity Profile            
                                                                                
                                                                >1 year-        
                                                                                
                                         Gross total    Within    5 year  Beyond
                                                                                
                                                        1 year inclusive  5 year
                                                                                
                                           Rmb'000    Rmb'000   Rmb'000  Rmb'000
                                                                                
    Floating rates                                                              
                                                                                
    Domestic commercial bank loans           496,739   496,739         -       -
                                                                                
    Other domestic financial institution     450,000   450,000         -       -
                                                                                
    Fixed rates                                                                 
                                                                                
    Domestic commercial bank loans         1,407,951 1,407,951         -       -
                                                                                
    Entrusted loans from                     570,000         -   570,000       -
    Communications Group                                                        
                                                                                
    Short-term financing note payable                                           
                                                                                
    - short-term financing note            1,000,000 1,000,000         -       -
                                                                                
    Bonds payable                                                               
                                                                                
    - beneficial certificates              1,300,000         - 1,300,000       -
                                                                                
    Bonds payable                                                               
                                                                                
    - subordinated bonds                   6,200,000 5,200,000 1,000,000       -
                                                                                
    Bonds payable                                                               
                                                                                
    - corporate bonds                      1,500,000         - 1,500,000       -
                                                                                
    Total as at June 30, 2016             12,924,690 8,554,690 4,370,000       -
                                                                                
    Total as at December 31, 2015         14,584,051 5,394,051 8,860,000 330,000

    As at June 30, 2016, the Group's loans from domestic commercial banks were
    short and long-term loans, of which long-term loans due in one year amounted to
    Rmb150.00 million, with floating interest rate ranging from 4.1325% to 4.9875%
    per annum. The floating interest rates for borrowings from other domestic
    financial institutions ranged from 4.275% to 4.5125% per annum. The annual
    interest rates for entrusted loans from Communications Group were fixed at
    4.55%. The annual coupon rate for short-term loan note was fixed at 2.97%. The
    fixed annual interest rates of beneficial certificates ranged from 3.45% to
    3.5% respectively. The fixed annual interest rates for subordinated bonds
    ranged from 5.7% to 6.3% respectively. The annual coupon rate for corporate
    bonds was fixed at 4.9%, while the annual interest rate for accounts payable to
    customers arising from the securities business was fixed at 0.35%.

    Total interest expenses for the Period amounted to Rmb344.48 million, while
    profit before interest and tax amounted to Rmb2,617.72 million. The interest
    cover ratio (profit before interest and tax over interest expenses) stood at
    7.6 (corresponding period of 2015 (Restated): 11.5) times.

    As at June 30, 2016, the asset-liability ratio (total liabilities over total
    assets) of the Group was 68.8% (December 31, 2015: 70.2%). 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 54.5% (December 31, 2015: 53.2%).

    Capital Structure

    As at June 30, 2016, the Group had Rmb22,284.22 million in total equity,
    Rmb43,893.27 million in fixed-rate liabilities, Rmb946.74 million in
    floating-rate liabilities, and Rmb4,202.34 million in interest- free
    liabilities, representing 31.2%, 61.5%, 1.3% and 6.0% of the Group's total
    capital, respectively. The gearing ratio, which is computed by dividing the
    total liabilities less accounts payable to customers arising from the
    securities business by total equity, was 119.5% as at June 30, 2016 (December
    31, 2015: 113.1%).

    Capital Expenditure Commitments and Utilization

    During the Period, capital expenditure of the Group totaled Rmb90.73 million.
    Amongst the total capital expenditure of the Group, Rmb15.27 million was
    incurred for acquisition and construction of properties, Rmb72.96 million was
    incurred for purchase and construction of equipments and facilities, and
    Rmb2.50 million was incurred for service area renovation and expansion.

    As at June 30, 2016, the remaining capital expenditure committed by the Group
    totaled Rmb570.46 million. Amongst the remaining balance of total capital
    expenditures committed by the Group, Rmb302.36 million will be used for
    acquisition and construction of properties, Rmb239.26 million for acquisition
    and construction of equipment and facilities, Rmb28.84 million for service area
    renovation and expansion.

    The Group will finance the above-mentioned capital expenditure commitments with
    internally generated cash flow first and then will comprehensively consider
    using debt financing and equity financing to meet any shortfalls.

    Contingent Liabilities and Pledge of Assets

    Pursuant to the board resolution of the Company dated November 16, 2012, the
    Company and Shaoxing Communications Investment Group Co., Ltd. (the other joint
    venture partner that holds 50% equity interest in Shengxin Co) provided
    Shengxin Co with a joint guarantee for its bank loans of Rmb2,200.00 million,
    in accordance with their proportionate equity interest in Shengxin Co. During
    the Period, Rmb60.00 million of the bank loans had been repaid and the
    remaining outstanding balance of the loans as at June 30, 2016 was Rmb1,980.00
    million.

    Except for the above, as at June 30, 2016, the Group did not have any other
    contingent liabilities, pledge of assets or guarantees.

    Foreign Exchange Exposure

    Save for (i) dividend payments to the holders of H shares in Hong Kong dollars,
    (ii) borrowing of HK$432,527,000 on June 8, 2016, and (iii) Zheshang
    International Financial Holding Co., Limited (a wholly owned subsidiary of
    Zheshang Securities) operating in Hong Kong, the Group's principal operations
    were transacted and denominated in Renminbi. During the Period, the Group
    purchased one-year Hong Kong dollar forwards of equivalent amount to hedge the
    foreign exchange risk derived from the Hong Kong dollar borrowing. Except for
    the above, during the Period the Group has not used any other financial
    instruments for hedging purpose. Therefore, the Group's exposure to exchange
    fluctuation is limited.

    Although the Directors do not foresee any material foreign exchange risks for
    the Group, there is no assurance that foreign exchange risks will not affect
    the operating results of the Group in the future.

    Outlook

    As economic uncertainty has increased globally, downward pressure on China's
    economy is expected to continue. Under the "new normal", Zhejiang Province, a
    region with an above average growth outlook across China, will also face
    relatively more intense economic pressure. The Group expects that the Group's
    toll road business will maintain steady growth in 2016 given the macro and
    regional economic outlook, albeit with a slightly slower growth rate in organic
    traffic volume compared with 2015.

    Currently, the business environment for the toll road industry is becoming
    increasingly complex. As more and more expressways within Zhejiang Province are
    launched for traffic, there will be a positive network effect but will also
    cause diversion impact. The Dongyang-Yongkang Expressway, which opened for
    traffic in July 2015, is expected to continue to have a slight diversion impact
    on traffic on the Jinhua Section of the Ningbo-Jinhua Expressway but the impact
    has been stabilized. The Group will endeavor to strengthen the monitoring and
    analysis of the transportation network as well as researching the traffic
    trends of the Group's expressways and the factors involved. The Group will
    adopt specific promotional and marketing measures to direct and attract more
    vehicles to use the expressways operated by the Group to minimize the diversion
    impact.

    China's securities market is still in the process of deleveraging, but the
    Chinese government has released a series of measures to promote the healthy
    development of its capital market, a signal to show the government's confidence
    in the securities sector's sustainable development in the long term, which may
    bring new opportunities to the Group's securities business. At the same time,
    the Group will explore all potential avenues to accelerate Zheshang Securities'
    A-Share listing application on the Shanghai Stock Exchange. Moreover, Zheshang
    Securities will expand into innovative businesses and seek new profit drivers
    while strengthening its cost control and risk management.

    Looking ahead into the second half of 2016, although China might still see
    continued downward economic pressure, the Company's management believes that
    the supply-side reform and various economic transformation measures initiated
    by Zhejiang Province will create a favorable development environment for all of
    the Group's businesses.

    In July 2016, the Zhejiang Province government made a decision to merge
    Zhejiang Communications Investment Group Co., Ltd. ("Communications Group", the
    controlling shareholder of the Company) with Zhejiang Railway Investment Group
    Limited Co., Ltd. into a provincial communications investment and financing
    platform. This new business entity, which will continue to use the name of
    Communications Group, will be responsible for more construction assignments of
    transportation and infrastructure projects, thereby providing more
    opportunities in a wider scope for the Company to invest in and acquire quality
    transportation and infrastructure projects within the province.

    In response to the dynamic change of internal and external environment, the
    Company's management will closely monitor the latest financial policy
    developments as well as evolving market trends to better formulate future
    strategic development plans. The Group will look to expand its core expressway
    business by investing in and acquiring quality toll road assets to further
    enhance its core competencies while strengthening its securities business and
    seeking suitable investments and development projects in order to enlarge the
    asset scale of its core businesses and increase future profitability.

    Disclosure of Interests and Other Matters

    PURCHASE, SALE AND REDEMPTION OF THE COMPANY'S SHARES

    Neither the Company nor any of its subsidiaries has purchased, sold, redeemed
    or cancelled any of the Company's shares during the Period.

    DISCLOSURE OF DIRECTORS', SUPERVISORS' AND CHIEF EXECUTIVE'S INTERESTS AND
    SHORT POSITIONS IN THE SHARES, UNDERLYING SHARES AND DEBENTURES

    As at June 30, 2016, none of the Directors, supervisors and chief executives of
    the Company had any interest or short position in the shares, underlying shares
    or debentures of the Company or any of its associated corporations (within the
    meaning of Part Xv of the Securities and Futures Ordinance (Cap 571 of the Laws
    of Hong Kong) (the "SFO")) as recorded in the register required to be kept
    pursuant to Section 352 of the SFO, or as otherwise notified to the Company and
    The Stock Exchange of Hong Kong Limited (the "Stock Exchange") pursuant to the
    Model Code for Securities Transactions by Directors of Listed Issuers (the
    "Model Code") in Appendix 10 to the Rules Governing the Listing of Securities
    on the Stock Exchange (the "Listing Rules").

    OTHER INTERESTS DISCLOSEABLE UNDER THE SFO

    As at June 30, 2016, the following shareholders held 5% or more of the issued
    share capital of the Company according to the register of interests in shares
    required to be kept by the Company pursuant to Section 336 of the SFO:

    Substantial shareholders                           Capacity    Total interests Percentage
                                                                      in number of         of
                                                                   ordinary shares the issued
                                                                    of the Company      share
                                                                                      capital
                                                                                       of the
                                                                                      Company
                                                                                    (domestic
                                                                                      shares)
                                                                                             
    Zhejiang Communications Investment Group Co., Ltd. Beneficial    2,909,260,000       100%
                                                       owner                                 
                                                                                             
    Substantial shareholders                           Capacity    Total interests Percentage
                                                                      in number of         of
                                                                   ordinary shares the issued
                                                                    of the Company      share
                                                                                      capital
                                                                                       of the
                                                                                      Company
                                                                                   (H Shares)
                                                                                             
    JP Morgan Chase & Co.                              Beneficial  169,442,626 (L)     11.81%
                                                       owner,        1,326,000 (S)      0.09%
                                                       investment   66,804,479 (P)      4.65%
                                                       manager and                           
                                                       custodian                             
                                                       corporation                           
                                                       /approved                             
                                                       lending                               
                                                       agent                                 
                                                                                             
    BlackRock, Inc.                                    Interest of 130,897,684 (L)      9.13%
                                                       controlled                            
                                                       corporation                           
                                                                                             
    The Bank of New York Mellon Corporation            Interest of  71,908,156 (L)      5.02%
                                                       controlled   66,367,400 (P)      4.63%
                                                       corporation                           

    The letter "L" denotes a long position. The letter "S" denotes a short
    position. The letter "P" denotes interest in a lending pool.

    Save as disclosed above, as at June 30, 2016, no person had registered an
    interest or short position in the shares or underlying shares of the Company
    that was required to be recorded pursuant to Section 336 of the SFO.

    COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE AND THE MODEL CODE

    During the Period, the Company had complied with all code provisions in the
    Corporate Governance Code and Corporate Governance Report (the "Code") set out
    in Appendix 14 to the Listing Rules, and had adopted the recommended best
    practices in the Code as and when applicable.

    The Company has adopted a code of conduct regarding directors' securities
    transactions on terms no less exacting than the required standard set out in
    the Model Code. The Directors have confirmed their full compliance with the
    required standard set out in the Model Code and its code of conduct regarding
    directors' securities transactions during the Period.

    RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF THE INTERIM REPORT AND
    ACCOUNTS

    Each of the Directors of the Company, whose name and function are listed in the
    section headed "Corporate Information" of this report, confirms that, to the
    best of his/her knowledge:

    - the condensed consolidated financial statements prepared in accordance with
    Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of
    Certified Public Accountants give a true and fair view of the assets,
    liabilities, financial position and performance of the Group and the
    undertakings included in the consolidation taken as a whole;

    - the management discussion and analysis included in the interim report
    includes a fair review of the development and performance of the business and
    the position of the Group and the undertakings included in the consolidation
    taken as a whole during the Period, together with a description of the
    principal risks and uncertainties that the Group faces for the remaining six
    months of the financial year; and

    - the interim report includes a fair review of the material related party
    transactions that have taken place during the Period and any material changes
    in the related party transactions described in the Company's annual report for
    the year ended 31 December 2015.

                                                              By order of the Board
                                                      Zhejiang Expressway Co., Ltd.
                                                                     ZHAN Xiaozhang
                                                                           Chairman

    Hangzhou, the PRC, August 18, 2016

    The electronic version of this report is published on the HKExnews website of
    the Hong Kong Exchanges and Clearing Limited (http://www.hkexnews.com.hk) and
    on the Company's website (www.zjec.com.cn).

    Condensed Consolidated Statement of Profit or Loss and Other Comprehensive
    Income

                                                                                                      For the six months ended June 30,
                                                                                                                                       
                                                                                                Notes           2016               2015
                                                                                                             Rmb'000            Rmb'000
                                                                                                         (Unaudited)         (Unaudited
                                                                                                                          and restated)
                                                                                                                                       
    Revenue                                                                                         4      5,337,120          6,185,875
                                                                                                                                       
    Operating costs                                                                                      (2,947,503)        (3,555,595)
                                                                                                                                       
    Gross profit                                                                                           2,389,617          2,630,280
                                                                                                                                       
    Securities investment gains                                                                              112,238            332,925
                                                                                                                                       
    Other income                                                                                    5        182,214            122,649
                                                                                                                                       
    Administrative expenses                                                                                 (43,101)           (48,125)
                                                                                                                                       
    Other expenses                                                                                          (22,355)           (44,777)
                                                                                                                                       
    Share of (loss) profit of associates                                                                       (992)             21,141
                                                                                                                                       
    Share of profit (loss) of a joint venture                                                                     98           (15,234)
                                                                                                                                       
    Finance costs                                                                                   6      (344,479)          (257,388)
                                                                                                                                       
    Profit before tax                                                                               7      2,273,240          2,741,471
                                                                                                                                       
    Income tax expense                                                                              8      (575,114)          (705,540)
                                                                                                                                       
    Profit for the Period                                                                                  1,698,126          2,035,931
                                                                                                                                       
    Other comprehensive (loss) income                                                                                                  
                                                                                                                                       
    Items that may be reclassified subsequently to profit or loss:                                                                     
                                                                                                                                       
    Available-for-sale financial assets                                                                                                
                                                                                                                                       
    - Fair values gain during the Period                                                                       2,666             21,747
                                                                                                                                       
    - Reclassification adjustments for cumulative gain included in profit or loss                           (21,254)              (410)
    upon disposal                                                                                                                      
                                                                                                                                       
    Exchange differences on translating foreign operations                                                        90              (125)
                                                                                                                                       
    Income tax relating to items that may be reclassified subsequently                                         4,647            (5,334)
                                                                                                                                       
    Other comprehensive (loss) income for the Period, net of tax                                            (13,851)             15,878
                                                                                                                                       
    Total comprehensive income for the Period                                                              1,684,275          2,051,809
                                                                                                                                       
    Profit for the Period attributable to:                                                                                             
                                                                                                                                       
    Owners of the Company                                                                                  1,368,206          1,495,193
                                                                                                                                       
    Non-controlling interests                                                                                329,920            540,738
                                                                                                                                       
                                                                                                           1,698,126          2,035,931
                                                                                                                                       
    Total comprehensive income for the Period attributable to:                                                                         
                                                                                                                                       
    Owners of the Company                                                                                  1,360,985          1,503,315
                                                                                                                                       
    Non-controlling interests                                                                                323,290            548,494
                                                                                                                                       
                                                                                                           1,684,275          2,051,809
                                                                                                                                       
    Earnings per share - Basic and diluted                                                         10 Rmb31.50 cents Rmb34.43 cents    

    Condensed Consolidated Statement of Financial Position

                                                              Notes       As at      As at
                                                                       June 30,   December
                                                                           2016        31,
                                                                        Rmb'000       2015
                                                                    (Unaudited)    Rmb'000
                                                                                 (Audited)
                                                                                          
    Non-current assets                                                                    
                                                                                          
    Property, plant and equipment                                     3,113,077  3,178,494
                                                                                          
    Prepaid lease payments                                               56,776     57,745
                                                                                          
    Expressway operating rights                                      12,733,572 13,229,442
                                                                                          
    Goodwill                                                             86,867     86,867
                                                                                          
    Other intangible assets                                             144,285    155,219
                                                                                          
    Interests in associates                                             644,444    583,537
                                                                                          
    Interest in a joint venture                                         275,698    275,600
                                                                                          
    Available-for-sale investments                                    1,682,378  1,635,858
                                                                                          
    Deferred tax assets                                                 340,002    329,526
                                                                                          
                                                                     19,077,099 19,532,288
                                                                                          
    Current assets                                                                        
                                                                                          
    Inventories                                                         334,732    316,528
                                                                                          
    Trade receivables                                            11     191,901    151,083
                                                                                          
    Loans to customers arising from margin financing business    12   7,658,277 10,550,590
                                                                                          
    Other receivables and prepayments                            13   1,588,591  1,231,799
                                                                                          
    Prepaid lease payments                                                1,939      1,939
                                                                                          
    Dividend receivable                                                       -     20,494
                                                                                          
    Derivative financial assets                                               -      2,288
                                                                                          
    Available-for-sale investments                                    1,213,642  1,032,750
                                                                                          
    Held for trading investments                                      7,040,990  3,761,224
                                                                                          
    Financial assets held under resale agreements                14   7,987,561  4,959,155
                                                                                          
    Bank balances held on behalf of customers                        22,403,032 27,078,574
                                                                                          
    Bank balances and cash                                                                
                                                                                          
    - Time deposits with original maturity over three months            275,000    270,000
                                                                                          
    - Cash and cash equivalents                                       3,553,806  4,983,051
                                                                                          
                                                                     52,249,471 54,359,475
                                                                                          
    Current liabilities                                                                   
                                                                                          
    Placements from other financial institutions                              -    200,000
                                                                                          
    Accounts payable to customers arising from                       22,402,799 27,009,641
    securities business                                                                   
                                                                                          
    Trade payables                                               15     746,710    908,616
                                                                                          
    Tax liabilities                                                     345,222    641,606
                                                                                          
    Other taxes payable                                                  79,206     88,022
                                                                                          
    Other payables and accruals                                  16   2,642,901  2,809,079
                                                                                          
    Dividends payable                                                   123,848        333
                                                                                          
    Derivative financial liabilities                                      7,762      4,258
                                                                                          
    Bank and other borrowings                                         2,354,690  1,777,951
                                                                                          
    Short-term financing note payable                                 1,000,000    616,100
                                                                                          
    Bonds payable                                                     5,200,000  3,000,000
                                                                                          
    Financial assets sold under repurchase agreements            17   9,512,523  5,385,380
                                                                                          
                                                                     44,415,661 42,440,986
                                                                                          
    Net current assets                                                7,833,810 11,918,489
                                                                                          
    Total assets less current liabilities                            26,910,909 31,450,777
                                                                                          
    Non-current liabilities                                                               
                                                                                          
    Bank and other borrowings                                           570,000  1,590,000
                                                                                          
    Bonds payable                                                     3,800,000  7,600,000
                                                                                          
    Deferred tax liabilities                                            256,692    262,128
                                                                                          
                                                                      4,626,692  9,452,128
                                                                                          
                                                                     22,284,217 21,998,649
                                                                                          
    Capital and reserves                                                                  
                                                                                          
    Share capital                                                     4,343,115  4,343,115
                                                                                          
    Reserves                                                         12,538,456 12,393,543
                                                                                          
    Equity attributable to owners of the Company                     16,881,571 16,736,658
                                                                                          
    Non-controlling interests                                         5,402,646  5,261,991
                                                                                          
                                                                     22,284,217 21,998,649

    Condensed Consolidated Statement of Changes in Equity

                                                                              Attributable to owners of the Company                                                      Non-       Total
                                                                                                                                                                  controlling            
                                                                                                                                                                    interests            
                                                                                                                                                                                         
                                                            Share     Share Statutory Capital  Investment     Foreign   Special    Dividend  Retained       Total                        
                                                          capital   premium   reserve reserve revaluation    currency  reserves     reserve   profits                                    
                                                                                                  reserve translation                                                                    
                                                                                                              reserve                                                                    
                                                                                                                                                                                         
                                                        Rmb'000   Rmb'000   Rmb'000   Rmb'000 Rmb'000     Rmb'000     Rmb'000   Rmb'000     Rmb'000   Rmb'000     Rmb'000     Rmb'000    
                                                                                                                                                                                         
    At January 1, 2015 (Audited and restated)           4,343,115 3,645,726 3,907,055   1,712      28,403           - 1,599,088   1,150,925 2,324,873  17,000,897   4,127,573  21,128,470
                                                                                                                                                                                         
    Profit for the Period                                       -         -         -       -           -           -         -           - 1,495,193   1,495,193     540,738   2,035,931
                                                                                                                                                                                         
    Other comprehensive income for the Period                   -         -         -       -       8,187        (65)         -           -         -       8,122       7,756      15,878
                                                                                                                                                                                         
    Total comprehensive income for the Period                   -         -         -       -       8,187        (65)         -           - 1,495,193   1,503,315     548,494   2,051,809
                                                                                                                                                                                         
    Dividend paid to non-controlling interests                  -         -         -       -           -           -         -           -         -           -   (106,008)   (106,008)
                                                                                                                                                                                         
    Final dividend                                              -         -         -       -           -           -         - (1,150,925)         - (1,150,925)           - (1,150,925)
                                                                                                                                                                                         
    Proposed interim dividend                                   -         -         -       -           -           -         -     260,587   260,587           -           -           -
                                                                                                                                                                                         
    At June 30, 2015 (Unaudited and restated)           4,343,115 3,645,726 3,907,055   1,712      36,590        (65) 1,599,088     260,587 3,559,479  17,353,287   4,570,059  21,923,346
                                                                                                                                                                                         
                                                        Rmb'000   Rmb'000   Rmb'000   Rmb'000 Rmb'000     Rmb'000     Rmb'000   Rmb'000     Rmb'000   Rmb'000     Rmb'000     Rmb'000    
                                                                                                                                                                                         
    At January 1, 2016 (Audited)                        4,343,115 3,355,621 4,505,773   1,712      56,332         191    18,666   1,216,072 3,239,176  16,736,658   5,261,991  21,998,649
                                                                                                                                                                                         
    Profit for the Period                                       -         -         -       -           -           -         -           - 1,368,206   1,368,206     329,920   1,698,126
                                                                                                                                                                                         
    Other comprehensive income for the Period                   -         -         -       -     (7,268)          47         -           -         -     (7,221)     (6,630)    (13,851)
                                                                                                                                                                                         
    Total comprehensive income for the Period                   -         -         -       -     (7,268)          47         -           - 1,368,206   1,360,985     323,290   1,684,275
                                                                                                                                                                                         
    Settlement of assets management product upon expiry         -         -         -       -           -           -         -           -         -           -     (4,880)     (4,880)
                                                                                                                                                                                         
    Dividend paid to non-controlling interests                  -         -         -       -           -           -         -           -         -           -   (150,111)   (150,111)
                                                                                                                                                                                         
    Final dividend                                              -         -         -       -           -           -         - (1,216,072)         - (1,216,072)           - (1,216,072)
                                                                                                                                                                                         
    Dividend for non-controlling interests                      -         -         -       -           -           -         -           -         -           -    (27,644)    (27,644)
                                                                                                                                                                                         
    Proposed interim dividend                                   -         -         -       -           -           -         -     260,587 (260,587)           -           -           -
                                                                                                                                                                                         
    At June 30, 2016(Unaudited)                         4,343,115 3,355,621 4,505,773   1,712      49,064         238    18,666     260,587 4,346,795  16,881,571   5,402,646  22,284,217

    Condensed Consolidated Statement of Cash Flows

                                                                                                           For the six months ended June 30,
                                                                                                                                            
                                                                                                                      2016              2015
                                                                                                                   Rmb'000           Rmb'000
                                                                                                               (Unaudited)        (Unaudited
                                                                                                                               and restated)
                                                                                                                                            
    Net cash from (used in) operating activities                                                                 1,804,419       (3,805,132)
                                                                                                                                            
    Net cash used in investing activities                                                                        (293,845)         (228,296)
                                                                                                                                            
    Net cash (used in) from financing activities                                                               (2,939,909)         8,630,214
                                                                                                                                            
    Net (decrease) increase in cash and cash equivalents                                                       (1,429,335)         4,596,786
                                                                                                                                            
    Cash and cash equivalents at beginning of the Period                                                         4,983,051         3,356,563
                                                                                                                                            
    Effect of exchange rate changes on the balance of cash and cash equivalents                                         90             (125)
    held in foreign currencies                                                                                                              
                                                                                                                                            
    Cash and cash equivalents at end of the Period                                                               3,553,806         7,953,224

    Notes to Condensed Consolidated Financial Statements

    1.     BASIS OF PREPARATION

    The condensed consolidated financial statements have been prepared in
    accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting
    issued by the Hong Kong Institute of Certified Public Accountants (the
    "HKICPA") as well as with the applicable disclosure requirements of Appendix 16
    to the Rules Governing the Listing of Securities on The Stock Exchange of Hong
    Kong Limited (the "Listing Rules").

    2.     MERGER ACCOUNTING RESTATEMENT

    On August 5, 2015, the Company entered into a share transfer agreement with
    Zhejiang Communications Investment Group Co., Ltd. ("Communications Group") to
    acquire 80.614% equity interest in Zhejiang Hanghui Expressway Co., Ltd.
    ("Hanghui Co") from Communications Group for a cash consideration of
    Rmb1,699,348,000. Hanghui Co is principally engaged in the operation and
    management of the Hanghui Expressway, which is the Zhejiang section of
    Hangzhou-Ruili Expressway (G56) within the national expressway network. Before
    the above acquisition, Hanghui Co was 80.614% owned by Communications Group and
    19.386% owned by non-controlling shareholders. The acquisition has been
    approved by independent shareholders on October 15, 2015 and subsequently
    completed on November 10, 2015. After the completion of the acquisition,
    Hanghui Co then became an 80.614% owned subsidiary of the Group and in December
    2015, the equity interest held by the Group was increased to 88.674% after the
    Company made a capital contribution to Hanghui Co. Since Communications Group
    is the parent company of the Company, the Group's acquisition of the 80.614%
    equity interest from Communications Group was regarded as a business
    combination involving entities under common control and was accounted for using
    merger accounting method, in accordance with the guidance set out in Accounting
    Guideline 5 "Merger Accounting for Common Control Combinations" ("AG5") issued
    by the HKICPA.

    As a result, the comparative condensed consolidated statement of profit or loss
    and other comprehensive income and condensed consolidated statement of cash
    flows for the six months ended June 30, 2015 have therefore been restated, in
    order to include the profit, assets and liabilities of the combining entities
    since the date on which they first come under common control.

    The adoption of merger accounting method in respect of the Group's acquisition
    of 80.614% equity interest in Hanghui Co has resulted in a decrease in total
    comprehensive income attributable to owners of the Company, a decrease in
    profit attributable to owners of the Company and a decrease in earnings per
    share (basic and diluted) for the six months ended June 30, 2015 by
    Rmb19,255,000, Rmb19,255,000 and Rmb0.44 cents, respectively.

    3.     PRINCIPAL ACCOUNTING POLICIES

    The condensed consolidated financial statements have been prepared on the
    historical cost basis except for certain financial instruments that are
    measured at fair value, as appropriate.

    In the Period, the Group has applied, for the first time, certain amendments to
    Hong Kong Financial Reporting Standards (the "HKFRSs") issued by HKICPA that
    are mandatorily effective for the Period. The application of the amendments to
    HKFRSs in the Period has had no material effect on the amounts reported in
    these condensed consolidated  financial statements and/or relevant disclosures
    set out in these condensed consolidated financial statements.

    Except for the above, the accounting policies and methods of computation
    applied in the condensed consolidated financial statements for the Period are
    consistent with those followed in the preparation of the Group's annual
    financial statements for the year ended December 31, 2015.

    4.     REVENUE AND SEGMENT INFORMATION

    Compared to the same period last year, there were no major changes in the
    reportable and operating segments of the Group during the Period.

    Segment revenue and results

    The following is an analysis of the Group's revenue and results by reportable
    and operating segments:

                                   For the six months ended June 30, 2016 (Unaudited)           
                                                                                                
                             Toll      Toll Securities     Other     Total Elimination     Total
                        operation   related  operation operation   segment     Rmb'000   Rmb'000
                          Rmb'000 operation    Rmb'000   Rmb'000   Rmb'000                      
                                    Rmb'000                                                     
                                                                                                
    Revenue                                                                                     
                                                                                                
    External sales      2,537,806   532,106  2,152,380   114,828 5,337,120           - 5,337,120
                                                                                                
    Inter-segment Sales         -       283          -         -       283       (283)         -
                                                                                                
    Total               2,537,806   532,389  2,152,380   114,828 5,337,403       (283) 5,337,120
                                                                                                
    Segment profit      1,183,392    35,119    526,063  (46,448) 1,698,126             1,698,126
                                                                                                
    Revenue                                                                                     
                                                                                                
    External sales      2,379,853   936,885  2,861,871     7,266 6,185,875           - 6,185,875
                                                                                                
    Inter-segment sales         -    11,255          -         -    11,255    (11,255)         -
                                                                                                
    Total               2,379,853   948,140  2,861,871     7,266 6,197,130    (11,255) 6,185,875
                                                                                                
    Segment profit      1,002,451    46,729    990,906   (4,155) 2,035,931             2,035,931

    Segment profit represents the profit after tax of each operating segment. This
    is the measure reported to the chief operating decision maker - the Company's
    General Manager, for the purpose of resource allocation and performance
    assessment.

    Revenue from major services

    An analysis of the Group's revenue, net of discounts and taxes, for the Period
    is as followed:

                                                            For the six months ended June 30,
                                                                                             
                                                                       2016              2015
                                                                    Rmb'000           Rmb'000
                                                                (Unaudited)        (Unaudited
                                                                                and restated)
                                                                                             
    Toll operation revenue                                        2,537,806         2,379,853
                                                                                             
    Service area businesses revenue (mainly sales of goods)         521,277           886,397
                                                                                             
    Advertising business revenue                                     10,829            22,052
                                                                                             
    Toll road maintenance service revenue                                 -            28,436
                                                                                             
    Commission and fee revenue from securities operation          1,407,455         2,026,162
                                                                                             
    Interest revenue from securities operation                      744,925           835,709
                                                                                             
    Hotel and catering revenue                                       43,431             7,266
                                                                                             
    Property sales revenue                                           71,397                 -
                                                                                             
    Total                                                         5,337,120         6,185,875

    5.           OTHER INCOME

                                                                    For the six months ended June 30,
                                                                                                     
                                                                               2016              2015
                                                                            Rmb'000           Rmb'000
                                                                        (Unaudited)        (Unaudited
                                                                                        and restated)
                                                                                                     
    Interest income on bank balances and entrusted loan receivables          17,480            28,449
                                                                                                     
    Rental income                                                            77,776            50,056
                                                                                                     
    Gain on commodity trading, net                                           22,747             3,722
                                                                                                     
    Handling fee income                                                       1,298             1,674
                                                                                                     
    Towing income                                                             3,958             4,228
                                                                                                     
    Exchange loss, net                                                      (4,519)               (9)
                                                                                                     
    Others                                                                   63,474            34,529
                                                                                                     
    Total                                                                   182,214           122,649

    6.           FINANCE COSTS

                                                              For the six months ended June 30,
                                                                                               
                                                                         2016              2015
                                                                      Rmb'000           Rmb'000
                                                                  (Unaudited)        (Unaudited
                                                                                  and restated)
                                                                                               
    Interest expenses wholly repayable within 5 years:                                         
                                                                                               
    Bank and other borrowings                                          70,660            96,509
                                                                                               
    Short-term financing note                                           8,723            42,609
                                                                                               
    Bonds payable                                                     265,096           121,523
                                                                                               
    Total borrowing costs                                             344,479           260,641
                                                                                               
    Less: Amount capitalised in the cost of qualifying assets               -           (3,253)
                                                                                               
                                                                      344,479           257,388

    7.           PROFIT BEFORE TAX

    The Group's profit before tax has been arrived at after charging:

                                                                          For the six months ended June 30,
                                                                                                           
                                                                                     2016              2015
                                                                                                           
                                                                                  Rmb'000           Rmb'000
                                                                              (Unaudited)        (Unaudited
                                                                                                           
                                                                                              and restated)
                                                                                                           
    Depreciation of property, plant and equipment                                 130,860           104,744
                                                                                                           
    Release of prepaid lease payments                                                 969             1,076
                                                                                                           
    Amortisation of expressway operating rights                                                            
                                                                                                           
    (included in operating costs)                                                 495,870           495,931
                                                                                                           
    Amortisation of other intangible assets (included in operating costs)          12,424            11,477
                                                                                                           
    Cost of inventories recognised as an expense                                  450,892           794,047

    8.           INCOME TAX EXPENSE

                              For the six months ended June 30,
                                                               
                                         2016              2015
                                      Rmb'000           Rmb'000
                                  (Unaudited)        (Unaudited
                                                  and restated)
                                                               
    Current tax:                                               
                                                               
    PRC Enterprise Income Tax         586,379           713,166
                                                               
    Deferred tax                     (11,265)           (7,626)
                                                               
                                      575,114           705,540

    Under the Law of the PRC on Enterprise Income Tax (the "EIT Law") and
    Implementation Regulation of the EIT Law, the applicable tax rate of the Group
    is 25%.

    Hong Kong Profits Tax is calculated at 16.5% of the estimated assessable
    profit. No Hong Kong Profits Tax has been provided as the Group has no
    estimated assessable profit during the Period.

    9.     DIVIDENDS

    The Directors have recommended the payment of an interim dividend of Rmb6 cents
    per share (corresponding period of 2015: Rmb6 cents per share), subject to
    shareholders' approval at the extraordinary general meeting of the Company.

    10.   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 Rmb1,368,206,000 (corresponding
    period of 2015 (Restated): Rmb1,495,193,000) and the 4,343,114,500
    (corresponding period of 2015: 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.

    11.   TRADE RECEIVABLES

                                             As at        As at
                                                               
                                          June 30, December 31,
                                                               
                                              2016         2015
                                                               
                                           Rmb'000      Rmb'000
                                                               
                                       (Unaudited)    (Audited)
                                                               
    Trade receivables comprise:                                
                                                               
    Fellow subsidiaries                      4,330       10,331
                                                               
    Third parties                          188,837      142,044
                                                               
    Total trade receivables                193,167      152,375
                                                               
    Less: Allowance for doubtful debts     (1,266)      (1,292)
                                                               
                                           191,901      151,083

    The Group has no credit period granted to its trade customers of toll operation
    and service area businesses. The Group's trade receivable balance for toll
    operation is toll receivables from the Expressway Fee Settlement Centre of the
    Highway Administration Bureau of Zhejiang Province, which are normally settled
    within 3 months. All of these trade receivables were neither past due nor
    impaired in both periods.

    In respect of the Group's asset management service operated by Zheshang
    Securities Co., Ltd ("Zheshang Securities", a 70.83% owned subsidiary of
    Zhejiang Shangsan Expressway Co., Ltd., which is a subsidiary of the Company),
    trading limits are set for customers. The Group seeks to maintain tight control
    over its outstanding accounts receivable in order to minimise credit risk.
    Overdue balances are regularly monitored by management.

    The following is an aged analysis of trade receivables, net of allowance for
    doubtful debts presented based on the invoice date at the end of the reporting
    period, which approximated the respective revenue recognition dates:

                             As at        As at
                                               
                          June 30, December 31,
                                               
                              2016         2015
                                               
                           Rmb'000      Rmb'000
                                               
                       (Unaudited)    (Audited)
                                               
    within 3 months        177,698       80,949
                                               
    3 months to 1 year      11,577       64,493
                                               
    1 to 2 years             1,881        4,679
                                               
    Over 2 years               745          962
                                               
    Total                  191,901      151,083

    12.   LOANS TO CUSTOMERS ARISING FROM MARGIN FINANCING BUSINESS

    The Group has provided customers with margin financing and securities lending
    for securities transactions, the credit facility limits to margin clients are
    determined by the discounted market value of the pledged securities accepted by
    the Group.

    All of the loans to margin clients which are secured by the underlying pledged
    securities are interest bearing. The Group maintains a list of approved stocks
    for margin lending at a specified loan to collateral ratio. Any excess in the
    lending ratio will trigger a margin call which the customers have to make good
    of the shortfall. The Group has the right to process forced liquidation if the
    customer fails to make good of the shortfall within a short period of time.

    As at June 30, 2016, loans to customers under the margin financing and
    securities lending activities carried out in  the PRC were secured by the
    customers' stock securities and cash collaterals. The undiscounted market value
    of the stock security collaterals was amounted to Rmb26,330,291,000 (December
    31, 2015: Rmb31,224,317,000). Cash collateral of Rmb1,731,319,000 (December 31,
    2015: Rmb1,061,658,000) received from clients was included in accounts payable
    to customers arising from securities business.

    No aged analysis is disclosed as in the opinion of the directors, the aged
    analysis does not give additional value in view of the nature of business of
    securities margining financing.

    13.         OTHER RECEIVABLES AND PREPAYMENTS

                                                                                          As at        As at
                                                                                                            
                                                                                       June 30, December 31,
                                                                                                            
                                                                                           2016         2015
                                                                                                            
                                                                                        Rmb'000      Rmb'000
                                                                                                            
                                                                                    (Unaudited)    (Audited)
                                                                                                            
    Entrusted loans and interest receivables from a related party (Note 18(ii) (2))     603,703      634,436
                                                                                                            
    Interest receivables                                                                232,747      269,080
                                                                                                            
    Prepayments                                                                          98,463       41,977
                                                                                                            
    Bond and listed equity subscription deposit                                         366,421      176,377
                                                                                                            
    Consideration receivable in relation to the disposal to                                                 
                                                                                                            
    Communications Group of an associate and a subsidiary                                 9,083       44,759
                                                                                                            
    Others (note)                                                                       278,174       65,170
                                                                                                            
                                                                                      1,588,591    1,231,799

    Note:    Since several asset management products managed by Zhejiang Zheshang
    Securities Asset Management CO., Ltd (Zheshang Asset Management, a subsidiary
    of Zhejaing Securities) had undertaken liquidity risk of default, Zheshang
    Asset Management provided liquidity support of Rmb228,700,000. The collateral
    for the above issue is still under compulsory execution. As the value of the
    collateral could cover the obligatory right, no provision was provided.

    14.         FINANCIAL ASSETS HELD UNDER RESALE AGREEMENT

                                           As at        As at
                                                             
                                        June 30, December 31,
                                                             
                                            2016         2015
                                                             
                                         Rmb'000      Rmb'000
                                                             
                                     (Unaudited)    (Audited)
                                                             
    Analysed by collateral type:                             
                                                             
    Bonds                              4,212,823    1,921,876
                                                             
    Stock securities                   3,774,738    3,037,279
                                                             
                                       7,987,561    4,959,155
                                                             
    Analysed by market:                                      
                                                             
    Inter-bank market                  4,212,823    1,521,876
                                                             
    Shanghai/Shenzhen Stock Exchange   3,774,738    3,437,279
                                                             
                                       7,987,561    4,959,155

    The collaterals include both equity and debt securities listed in the PRC. As
    at June 30, 2016, the fair value of equity and debt securities as collaterals
    was Rmb11,813,309,000 (December 31, 2015: Rmb6,394,246,000) and
    Rmb4,235,110,000 (December 31, 2015: Rmb1,947,197,000), respectively.

    15.         TRADE PAYABLES

    Trade payables mainly represent the construction payables for the maintenance
    projects of toll expressways. The following is an aged analysis of the trade
    payables presented based on the invoice date:

                             As at        As at
                                               
                          June 30, December 31,
                                               
                              2016         2015
                                               
                           Rmb'000      Rmb'000
                                               
                       (Unaudited)    (Audited)
                                               
    within 3 months        245,456      422,424
                                               
    3 months to 1 year     182,938      230,650
                                               
    1 to 2 years           202,097      117,341
                                               
    2 to 3 years            34,489       35,425
                                               
    Over 3 years            81,730      102,776
                                               
    Total                  746,710      908,616

    16.         OTHER PAYABLES AND ACCRUALS

                                                         As at        As at
                                                                           
                                                      June 30, December 31,
                                                                           
                                                          2016         2015
                                                                           
                                                       Rmb'000      Rmb'000
                                                                           
                                                   (Unaudited)    (Audited)
                                                                           
    Other liabilities:                                                     
                                                                           
    Accrued payroll and welfare                      1,554,649    1,609,626
                                                                           
    Advance from rental and advertising customers       72,214       62,151
                                                                           
    Toll collected on behalf of other toll roads         8,717        2,758
                                                                           
     Retention payable                                 185,976      123,917
                                                                           
    Deposit received for disposal of an associate      165,600      165,600
                                                                           
    Deposits of equity return swaps                     17,000       77,000
                                                                           
    Payable to limited partnership in subsidiaries     166,141      133,088
                                                                           
    Others                                             324,694      287,673
                                                                           
                                                     2,494,991    2,461,813
                                                                           
    Other accruals                                     147,910      347,266
                                                                           
    Total                                            2,642,901    2,809,079

    17.         FINANCIAL ASSETS SOLD UNDER REPURCHASE AGREEMENTS

                                       As at        As at
                                                         
                                    June 30, December 31,
                                                         
                                        2016         2015
                                                         
                                     Rmb'000      Rmb'000
                                                         
                                 (Unaudited)    (Audited)
                                                         
    Analysed as collateral type:                         
                                                         
    Bonds                          9,312,523    3,485,380
                                                         
    Beneficial rights                200,000    1,900,000
                                                         
                                   9,512,523    5,385,380
                                                         
    Analysed by market:                                  
                                                         
    Shanghai Stock Exchange        2,394,615      350,000
                                                         
    Inter-bank market              6,917,908    3,135,380
                                                         
    Other financial institutions     200,000    1,900,000
                                                         
                                   9,512,523    5,385,380

    Sales and repurchase agreements are transactions in which the Group sells a
    security and simultaneously agrees to repurchase it (or an asset that is
    substantially the same) at a fixed price on a future date. Since the repurchase
    prices are fixed, the Group is still exposed to substantially all the credit
    risks and market risks and rewards of those securities sold. These securities
    are not derecognised from the financial statements but regarded as "collateral"
    for the liabilities because the Group retains substantially all the risks and
    rewards of these securities. In addition, the cash received is recognised as
    financial liability.

    As at 30 June, 2016, the Group entered into repurchase agreements with certain
    counterparties. The proceeds from selling such securities are presented as
    financial assets sold under repurchase agreements. Because the Group sells the
    contractual rights to the cash flows of the securities, it does not have the
    ability to use the transferred securities during the term of the arrangement.

    18.   RELATED PARTY TRANSACTIONS AND BALANCES

    The following is a summary of the related party during the Period:

    (i)     Transactions and balances with government related parties

    The Group operates in an economic environment currently predominated by
    entities directly or indirectly owned or controlled by the PRC government
    ("government-related entities"). In addition, the Group itself is part of a
    larger group of companies under Communications Group which is controlled by the
    PRC government. However, due to the business nature, in respect of the Group's
    toll road business and securities business, the directors are of the opinion
    that it is impracticable to ascertain the identity of counterparties and
    accordingly whether the transactions are with other government-related entities
    in the PRC. Details of other significant transactions with government related
    parties are summarised below:

    (a)   Communications Group

    (1)       Entrusted loans

                                              For the six months ended June 30,
                                                                               
                                                         2016              2015
                                                                               
                                                      Rmb'000           Rmb'000
                                                                               
                                                  (Unaudited)        (Unaudited
                                                                  and restated)
                                                                               
    Interest expenses incurred                         13,112            15,057

    Pursuant to the entrusted loan contracts entered into between Hanghui Co and
    Communications Group on March 12, 2013, Communications Group agreed to provide
    Hanghui Co with entrusted loans amounting to Rmb570,000,000 at a fixed interest
    rate of 5.24% per annum, which have been renewed for another three years on
    August 10, 2015, at a fixed interest rate of 4.55% per annum, with maturity
    date of August 10, 2018. Such amount was early repaid before the publication of
    this report.
    (2)       Management and Administrative services

    On July 1, 2015, the Company entered into agreements with the Communications
    Group, pursuant to which, the Company would provide management and
    administrative services to two toll roads of the Communications
    Group, including Shenjiahuhang Expressway and Shensuzhewan Expressway.
    According to the agreements, the Company would charge the Communications Group
    management fee based on actual cost basis. During the Period, a total
    management fee of Rmb235,000 has been recognized.

    18.   RELATED PARTY TRANSACTIONS AND BALANCES (Continued)

    (i)     Transactions and balances with government related parties (Continued)

    (a)   Communications Group (Continued)

    (3)       Maintenance services

    On June 13, 2016, the Company entered into road maintenance agreements with
    Zhejiang Expressway Maitenance Co., Ltd ("Maintenance Co", a 100% owned
    subsidiary of Communications Group) pursuant to which, Maintenance Co would
    provide maintenance services for the four expressways of the Group. Such
    service began from May 1, 2016, and will be expired by November 30, 2016, with
    a term of seven months.

                                For the six months ended June 30,
                                                                 
                                           2016              2015
                                                                 
                                        Rmb'000           Rmb'000
                                                                 
                                    (Unaudited)        (Unaudited
                                                    and restated)
                                                                 
    Maintenance service expense          88,702               N/A

    (4)         Other transactions

                                                         For the six months ended June 30,
                                                                                          
                                                                    2016              2015
                                                                                          
                                                                 Rmb'000           Rmb'000
                                                                                          
                                                             (Unaudited)        (Unaudited
                                                                             and restated)
                                                                                          
    Toll road service area leasing income earned(Note i)           4,523             4,550
                                                                                          
    Toll road service area management fee paid (Note i)            1,953             1,793
                                                                                          
    Property leasing income earned                                   794               807
                                                                                          
    Road maintenance service expense incurred(Note ii)               592             3,515

    Note i:     Pursuant to the leasing and operation agreement entered into
    between Zhejiang Jinhua Yongjin Expressway Co., Ltd. ("Jinhua Co", a 100% owned
    subsidiary of the Company) and Zhejiang Communications Investment Group
    Industrial Development Co., Ltd. (Zhejiang Communications Investment, a fellow
    subsidiary of Communications Group), Jinhua Co leased the toll road service
    area to Zhejiang Communications Investment and Zhejiang Communications
    Investment managed the operation of the service area and the advertising
    business in respect of the toll road service area. Such business began from
    January 1, 2011, and will be expired at the same time with the operating right
    in 2030.

    Pursuant to the leasing and operation agreements entered into between Hanghui
    Co and Zhejiang Communications Investment, Hanghui Co leased the toll road
    service area to Zhejiang Communications Investment and Zhejiang Communications
    Investment managed the operation of the service. Such business began from
    January 1, 2015 and will be expired at the same time with the operating right
    for respective expressway sections in 2029 to 2031.

    Note ii:    Road maintenance service provided by other subsidiaries (except for
    Maintenance Co) of Communications Group

    18.         RELATED PARTY TRANSACTIONS AND BALANCES (Continued)

    (i)           Transactions and balances with government related parties
    (Continued)

    (b)         Transactions with other government related parties

    (1)         Zhejiang Expressway Petroleum Development Co., Ltd ("Petroleum Co")

                                       For the six months ended June 30,
                                                                        
                                                   2016             2015
                                                                        
                                                Rmb'000          Rmb'000
                                                                        
                                            (Unaudited)      (Unaudited)
                                                                        
    Rental income from Petrol stations           10,212              N/A
                                                                        
    Purchase of petroleum products              396,063          735,770

    Pursuant to the operation management agreement entered into between Zhejiang
    Expressway Investment Development Co., Ltd. ("Development Company", a wholly
    owned subsidiary of the Company), and Petroleum Co in respect of the petrol
    stations in the service areas along Shanghai-Hangzhou-Ningbo and Shangsan
    Expressways. Petroleum Company assists Development Company in running their
    petrol stations along these roads. The agreement was renewed from May in 2016.

    Pursuant to the lease agreements entered into between Development Company and
    Petroleum Company, Development Company contracted out the operating rights of
    petrol stations and the related buildings and equipment facilities at the
    service areas along Shanghai-Hangzhou-Ningbo and Shangsan Expressways to
    Petroleum Company, which run the petrol stations. The leasing term began upon
    the completion of change of business license of each petrol stations, and will
    be expired on December 31, 2018. Both parties could negotiate to continue the
    agreements after expiry of the lease. During the Period, Rmb10,212,000 from
    rental income of petrol stations was recognized.

    Petroleum Company is a government related party of the Group.

    (2)         Others

    The Group has entered into various significant transactions, including deposit
    placements, borrowings and other general banking facilities, with certain banks
    and financial institutions which are government-related entities in its
    ordinary course of business. In view of the nature of those banking
    transactions, the directors are of the opinion that separate disclosure would
    not be meaningful.

    18.   RELATED PARTY TRANSACTIONS AND BALANCES (Continued)

    (ii)          Transactions and balances with associates and other
    non-government related parties

    (1)         Loan advanced from Zhejiang Communications Investment Group Finance
    Co., Ltd. ("Zhejiang Communications Finance")

    Zhejiang Communications Finance has advanced several loans to Hanghui Co.
    Amongst the loans, Rmb50,000,000 was a one-year term loan carried interest at a
    fixed annual interest rate of 5.1% and was repaid in June 2016 upon expiry.
    Rmb450,000,000 were long term loans with floating interest rate from 4.275% to
    4.5125% respectively, among which Rmb330,000,000 was early repaid before the
    publication of this report.

                                                 As at             As at
                                                                        
                                              June 30,      December 31,
                                                                        
                                                  2016              2015
                                                                        
                                               Rmb'000           Rmb'000
                                                                        
                                           (Unaudited)         (Audited)
                                                                        
    Outstanding loan payable balances:                                  
                                                                        
    within one year                            100,000           250,000
                                                                        
     over one year                             350,000           250,000
                                                                        
                                       For the six months ended June 30,
                                                                        
                                                  2016              2015
                                                                        
                                               Rmb'000           Rmb'000
                                                                        
                                           (Unaudited)        (Unaudited
                                                           and restated)
                                                                        
    Interest expenses incurred                  11,137            11,188

    18.         RELATED PARTY TRANSACTIONS AND BALANCES (Continued)

    (ii)          Transactions and balances with associates and other
    non-government related parties (Continued)

    (2)         Loans advanced to a subsidiary of Zhejiang Concord Property
    Investment Co., Ltd. ("Zhejiang Concord Property")

                                                                                                                                               As at             As at
                                                                                                                                                                      
                                                                                                                                            June 30,      December 31,
                                                                                                                                                                      
                                                                                                                                                2016              2015
                                                                                                                                                                      
                                                                                                                                             Rmb'000           Rmb'000
                                                                                                                                                                      
                                                                                                                                         (Unaudited)         (Audited)
                                                                                                                                                                      
    Outstanding loan receivable balances                                                                                                     570,000           600,000
                                                                                                                                                                      
    Interest receivables                                                                                                                      33,703            34,436
                                                                                                                                                                      
                                                                                                                                             603,703           634,436
                                                                                                                                                                      
    Analysed for reporting purpose as:                                                                                                                                
                                                                                                                                                                      
    Current assets                                                                                                                           603,703           634,436
                                                                                                                                                                      
                                                                                                                                     For the six months ended June 30,
                                                                                                                                                                      
                                                                                                                                                2016              2015
                                                                                                                                                                      
                                                                                                                                             Rmb'000           Rmb'000
                                                                                                                                                                      
                                                                                                                                         (Unaudited)        (Unaudited
                                                                                                                                                         and restated)
                                                                                                                                                                      
    Interest income                                                                                                                           11,380            21,794
    earned                                                                                                                                                            

    During the Period, the Group advanced additional entrusted loans totaling
    Rmb120,000,000 (corresponding period of 2015: Rmb500,000,000) and received
    settlement of loan principal and interests amounting to Rmb150,000,000
    (corresponding period of 2015: Rmb400,000,000) and Rmb12,300,000 (corresponding
    period of 2015: Rmb11,304,000), respectively.

    The entrusted loans were unsecured and repayable in accordance with the terms
    of entrusted loan agreements, carrying interests at an effective interest rate
    of 3.915% (2015: 8%) per annum. Such entrusted loans were guaranteed by world
    Trade Center Zhejiang Real Estate Development Co., Ltd., in full.

    18.   RELATED PARTY TRANSACTIONS AND BALANCES (Continued)

    (ii)          Transactions and balances with associates and other
    non-government related parties (Continued)

    (3)   Financial service provided by Zhejiang Communications Finance

    The Group has entered into a financial services agreement with Zhejiang
    Communications Finance. Pursuant to the agreement, Zhejiang Communications
    Finance agreed to provide the Group with deposit services, the loan and
    financial leasing services, the clearing services and other financial services.

                                                                                                                                                   As at             As at
                                                                                                                                                                          
                                                                                                                                                June 30,      December 31,
                                                                                                                                                                          
                                                                                                                                                    2016              2015
                                                                                                                                                                          
                                                                                                                                                 Rmb'000           Rmb'000
                                                                                                                                                                          
                                                                                                                                             (Unaudited)         (Audited)
                                                                                                                                                                          
    Bank balances and cash                                                                                                                                                
                                                                                                                                                                          
    - Time deposits with original maturity over three months                                                                                      65,000            65,000
                                                                                                                                                                          
    - Cash and cash equivalents                                                                                                                  536,173           480,471
                                                                                                                                                                          
                                                                                                                                                 601,173           545,471
                                                                                                                                                                          
                                                                                                                                         For the six months ended June 30,
                                                                                                                                                                          
                                                                                                                                                    2016              2015
                                                                                                                                                                          
                                                                                                                                                 Rmb'000           Rmb'000
                                                                                                                                                                          
                                                                                                                                             (Unaudited)        (Unaudited
                                                                                                                                                             and restated)
                                                                                                                                                                          
    Interest income                                                                                                                                4,179             1,939
    earned                                                                                                                                                                

    19.   FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS

    This note provides information about how the Group determines fair value of
    various financial assets and financial liabilities.

    Fair value measurements recognised in the condensed consolidated statement of
    financial position that are measured at fair value on a recurring basis

    Some of the Group's financial assets and financial liabilities are measured at
    fair value at the end of each reporting period. The following table gives
    information about how the fair value of these financial assets and financial
    liabilities are determined (in particular, the valuation technique(s) and input
    (s) used).

    19.         FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS (Continued)

                                           Fair value as at      Fair value Basis of fair value measurement/        Significant   Relationship of     
                                                                 hierachy   valuation technique(s) and key input(s) unobservable  unobservable        
                                                                                                                    input(s)      inputs to fair value
                                                                                                                                                      
       Financial   Classified as              June 30,  December                                                                                      
       assets                                     2016       31,                                                                                      
                                               Rmb'000      2015                                                                                      
                                           (Unaudited)   Rmb'000                                                                                      
                                                       (Audited)                                                                                      
                                                                                                                                                      
    1) Equity      Held for trading   Assets- 212,144  Assets-   Level 1    Quoted bid prices in an active market   N/A           N/A                 
       investments investments                         221,699                                                                                        
       listed in                                                                                                                                      
       exchange                                                                                                                                       
                                                                                                                                                      
    2) Equity      Available-for-sale Assets -303,366  Assets-   Level 2    Derived from recent transaction price   N/A           N/A                 
       securities  investment                          237,260                                                                                        
       listed                                                                                                                                         
       on exchange                                                                                                                                    
       (inactive   Available-for-sale Assets -272,043  Assets-   Level 3    Discounted cash flow. The fair value is Discounted    The higher the      
       due to low  investment                          202,441              determined with reference to the quoted for lack of   discount, the       
       transaction                                                          market prices with an adjustment of     marketability lower the fair value
       volume)                                                              discount for lack of marketability.                                       
                                                                                                                                                      
                                                                                                                                                      
    3) Listed      Held for trading   Assets - 5,758   Assets-   Level 1    Quoted bid prices in an active market   N/A           N/A                 
       Open-ended  investments                         191,967                                                                                        
       equity                                                                                                                                         
       funds                                                                                                                                          
                                                                                                                                                      
    4) Funds       Available-for-sale Assets - 71,305  Assets-   Level 1    Quoted bid prices in an active market   N/A           N/A                 
       listed in   investment                          55,982                                                                                         
       exchange                                                                                                                                       
                                                                                                                                                      
    5) Debt        Held for trading   Assets           Assets-   Level 1    Quoted bid prices in an active market   N/A           N/A                 
       investments investments        -2,062,318       1,170,952                                                                                      
       listed in                                                                                                                                      
       exchange or Held for trading   Assets           Assets-   Level 2    Discounted cash flow. Future cash flows N/A           N/A                 
       in          investments        -4,760,770       2,176,606            are estimated based on applying the                                       
       inter-bank                                                           interest yield curves of different                                        
       market                                                               types of bonds as the key parameter.                                      
                                                                                                                                                      
                   Available-for-sale Assets -50,000   Assets-   Level 2    Discounted cash flow. Future cash flows N/A           N/A                 
                   investment                          50,000               are estimated based on applying the                                       
                                                                            interest yield curves of different                                        
                                                                            types of bonds as the key parameter.                                      
                                                                                                                                                      
    6) Investment  Available-for-sale Assets -595,761  Assets    Level 2    Shares of the net assets of the         N/A           N/A                 
       in          investment                          -544,597             products,                                                                 
       structured                                                           determined with reference to the net                                      
       products                                                             asset value of the products, calculated                                   
                                                                            by observable (quoted) prices of                                          
                                                                            underlying investment portfolio and                                       
                                                                            adjustment of related expenses.                                           
                                                                                                                                                      
                   Available-for-sale Assets - 183,142 Assets-   Level 3    Discounted cash flow. Future cash       Actual yield  The higher the      
                   investment                          141,418              flows are estimated based on applicable of            actual yield,       
                                                                            yield of underlying investment          the           the higher          
                                                                            portfolio                               underlying    the fair value      
                                                                            and adjustment of related expenses,     investment                        
                                                                            discounted at a rate that reflects      portfolio and                     
                                                                            the credit risk of various              the discount                      
                                                                            counterparties                          rate                              
                                                                                                                                                      
    7) Investment  Available-for-sale Assets - 10,068  Assets-   Level 3    Discounted cash flow. Future cash       Actual yield  The higher the      
       in          investment                          10,000               flows are estimated based on applicable of            actual yield,       
       trust                                                                yield of underlying investment          the            the higher         
       products                                                             portfolio                               underlying    the fair value      
                                                                            and adjustment of related expenses,     investment                        
                                                                            discounted at a rate that reflects      portfolio and                     
                                                                            the credit risk of various              the discount                      
                                                                            counterparties                          rate                              
                                                                                                                                                      
    8) Unlisted    Available-for-sale Assets-1,365,738 Assets-   Level 2    Calculated based on the fair value of   N/A           N/A                 
       equity      investment                          1,382,313            the underlying investments which are                                      
       investment                                                           listed equity securities, after making                                    
       at fair                                                              adjustments of related expenses                                           
       value                                                                                                                                          

    As at June 30,2016 (Unaudited)

                                             Level 1   Level 2   Level 3  Total    
                                             Rmb'000   Rmb'000   Rmb'000  Rmb'000  
                                                                                   
    Held for trading investments                                                   
                                                                                   
    - Equity securities                                                 -          
                                                                                   
     a. Manufacturing                          138,298         -        -   138,298
                                                                                   
    b. Finance service                          43,944         -        -    43,944
                                                                                   
    c. Information technology service            8,553         -        -     8,553
                                                                                   
    d. Energy and water service                  5,464         -        -     5,464
                                                                                   
    e. Transportation, storage and postal        5,107         -        -     5,107
    service                                                                        
                                                                                   
    f. Real Estate                               7,442         -        -     7,442
                                                                                   
    g. wholesale                                 2,853         -        -     2,853
                                                                                   
    h. Others                                      483         -        -       483
                                                                                   
                                               212,144         -        -   212,144
                                                                                   
    - Funds                                      5,758         -        -     5,758
    - Bonds                                  2,062,318 4,760,770          6,823,088
                                                                                   
    Sub-total                                2,280,220 4,760,770        - 7,040,990
                                                                                   
    Available-for-sale investments                                                 
                                                                                   
    - Equity securities                                                            
                                                                                   
    a. Manufacturing                                 -   148,754        -   148,754
                                                                                   
    b. Finance service                               -     8,960        -     8,960
                                                                                   
    c. Information technology service                -    76,155  272,043   348,198
                                                                                   
    d. Transportation, storage and postal            -     4,528        -     4,528
    service                                                                        
                                                                                   
    e. Leasing and commercial service                -     1,649        -     1,649
                                                                                   
    f. Culture, PE and entertainment                 -    21,935        -    21,935
                                                                                   
    g. wholesale                                     -    19,917        -    19,917
                                                                                   
    h. Construction                                  -    10,146        -    10,146
                                                                                   
    i. Others                                        - 1,377,060        - 1,377,060
                                                                                   
                                                     - 1,669,104 -272,043 1,941,147
                                                                                   
    - Funds                                     71,305         -        -    71,305
                                                                                   
    - Bonds                                          -    50,000        -    50,000
                                                                                   
    - Structured products                            -   595,761  183,142   778,903
                                                                                   
    - Trust products                                 -         -   10,068    10,068
                                                                                   
    Sub-total                                   71,305 2,314,865  465,253 2,851,423

    As at December 31, 2015 (Audited)

                                                             Level 1   Level 2 Level 3     Total
                                                                                                
                                                             Rmb'000   Rmb'000 Rmb'000   Rmb'000
                                                                                                
    Held for trading investments                                                                
                                                                                                
    - Equity securities                                                                         
                                                                                                
    a. Manufacturing                                          99,732         -       -    99,732
                                                                                                
    b. Finance service                                        45,814         -       -    45,814
                                                                                                
    c. Information technology service                         21,284         -       -    21,284
                                                                                                
    d. Transportation, storage and postal service             54,869         -       -    54,869
                                                                                                
                                                             221,699         -       -   221,699
                                                                                                
    - Open-ended funds                                       191,967         -       -   191,967
                                                                                                
    - Bonds                                                1,170,952 2,176,606       - 3,347,558
                                                                                                
    Sub-total                                              1,584,618 2,176,606       - 3,761,224
                                                                                                
    Available-for-sale investments                                                              
                                                                                                
    - Equity securities                                                                         
                                                                                                
    a. Manufacturing                                               -   104,309       -   104,309
                                                                                                
    b. Information technology service                              -    58,688 202,441   261,129
                                                                                                
    c. Finance service                                             -     3,919       -     3,919
                                                                                                
    d. Transportation, storage and postal service                  -     2,305       -     2,305
                                                                                                
    e. Construction                                                -    18,837       -    18,837
                                                                                                
    f. Energy service                                              -     3,108       -     3,108
                                                                                                
    g. wholesale                                                   -     9,210       -     9,210
                                                                                                
    h. Agriculture, forestry, fishery and animal husbandry         -     6,706       -     6,706
                                                                                                
    i. Others                                                      - 1,412,491       - 1,412,491
                                                                                                
                                                                   - 1,619,573 202,441 1,822,014
                                                                                                
    - Funds                                                   55,982         -       -    55,982
                                                                                                
    - Corporate bonds                                              -    50,000       -    50,000
                                                                                                
    - Structured products                                          -   544,597 141,418   686,015
                                                                                                
    - Trust products                                               -         -  10,000    10,000
                                                                                                
    Sub-total                                                 55,982 2,214,170 353,859 2,624,011

    There were no transfers between instruments in Level 1 and Level 2 in the
    current and prior period.

    19.         FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS (Continued)

    The following table represents the changes in Level 3 available-for-sale
    investments.

                                                        Structured    Trust Restricted     Total
                                                          products products     Shares          
                                                                                                
                                                        Rmb'000    Rmb'000  Rmb'000    Rmb'000  
                                                                                                
    As at January 1, 2015                                  251,191   89,515          -   340,706
                                                                                                
    Addition                                                20,080   20,000    200,000   240,080
                                                                                                
    Disposal                                              (20,000) (93,000)          - (113,000)
                                                                                                
    Total loss recognised in other comprehensive income   (21,337)  (6,515)      2,441  (25,411)
                                                                                                
    Transfer out of Level 3                               (88,516)        -          -  (88,516)
                                                                                                
    As at December 31, 2015                                141,418   10,000    202,441   353,859
                                                                                                
    Addition                                                62,500        -          -    62,500
                                                                                                
    Disposal                                              (20,000)        -          -  (20,000)
                                                                                                
    Total gain recognised in other comprehensive loss        (776)       68     69,602    68,894
                                                                                                
    As at June 30, 2016                                    183,142   10,068    272,043   465,253

    20.         SUMMARY OF FINANCIAL INFORMATION OF THE COMPANY

                                        As at        As at
                                                          
                                     June 30, December 31,
                                                          
                                         2016         2015
                                                          
                                      Rmb'000      Rmb'000
                                                          
                                  (Unaudited)    (Audited)
                                                          
    Investments in subsidiaries     9,809,369    9,809,369
                                                          
    Amounts due from subsidiaries   1,212,907      314,649
                                                          
    Other assets                    5,789,821    6,085,030
                                                          
                                   16,812,097   16,209,048
                                                          
    Total liabilities               4,016,028    2,955,256
                                                          
    Capital and reserves                                  
                                                          
    Share capital                   4,343,115    4,343,115
                                                          
    Reserves                        8,452,954    8,910,677
                                                          
                                   12,796,069   13,253,792

    21.         APPROVAL OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

    The condensed consolidated financial statements were approved and authorised
    for issue by the board of directors on August 18, 2016.

    Corporate Information

    EXECUTIVE DIRECTORS                      STATUTORY ADDRESS                             
                                                                                           
    ZHAN Xiaozhang (Chairman)                12/F, Block A, Dragon Century Plaza           
                                                                                           
    CHENG Tao                                1 Hangda Road                                 
                                                                                           
    LUO Jianhu (General Manager)             Hangzhou City, Zhejiang Province              
                                                                                           
                                             PRC 310007                                    
                                                                                           
    NON-EXECUTIVE DIRECTORS                  Tel : 86-571-8798 5588                        
                                                                                           
                                             Fax: 86-571-8798 5599                         
                                                                                           
    WANG Dongjie                                                                           
                                                                                           
    DAI Benmeng                                                                            
                                                                                           
    ZHOU Jianping                            PRINCIPAL PLACE OF BUSINESS                   
                                                                                           
    INDEPENDENT                              5/F., No. 2, Mingzhu Int'l Business Center    
                                                                                           
    NON-EXECUTIVE DIRECTORS                  199 wuxing Road                               
                                                                                           
                                             Hangzhou City                                 
                                                                                           
    ZHOU Jun                                 Zhejiang Province                             
                                                                                           
    PEI Ker-wei                              PRC 310020                                    
                                                                                           
    LEE wai Tsang, Rosa                      Tel : 86-571-8798 5588                        
                                                                                           
                                             Fax: 86-571-8798 5599                         
                                                                                           
    SUPERVISORS                              LEGAL ADVISERS                                
                                                                                           
    WU Yongmin (Resigned, with effect from   As to Hong Kong and US law:                   
                                                                                           
    August 18, 2016)                         Herbert Smith Freehills                       
                                                                                           
    YAO Huiliang                             23rd Floor, Gloucester Tower                  
                                                                                           
    SHI Ximin                                15 Queen's Road Central                       
                                                                                           
    LU Xinghai                               Hong Kong                                     
                                                                                           
    COMPANY SECRETARY                        As to English law:                            
                                                                                           
                                             Herbert Smith Freehills LLP                   
                                                                                           
    Tony ZHENG                               Exchange House                                
                                                                                           
                                             Primrose Street London EC2A 2HS United Kingdom
                                                                                           
                                             As to PRC law:                                
                                                                                           
                                             T & C Law Firm                                
                                                                                           
    AUTHORIZED REPRESENTATIVES               11/F, Block A, Dragon Century Plaza           
                                                                                           
                                             1 Hangda Road                                 
                                                                                           
    ZHAN Xiaozhang                           Hangzhou City, Zhejiang Province              
                                                                                           
    LUO Jianhu                               PRC 310007                                    
                                                                                           
    AUDITORS                                 H SHARES LISTING INFORMATION                  
                                                                                           
    Deloitte Touche Tohmatsu                 The Stock Exchange of Hong Kong Limited       
                                                                                           
    35/F, One Pacific Place                  Code: 0576                                    
                                                                                           
    88 Queensway                                                                           
                                                                                           
    Hong Kong                                LONDON STOCK EXCHANGE PLC                     
                                                                                           
    INVESTOR RELATIONS CONSULTANT            Code: ZHEH                                    
                                                                                           
    PR Concepts Asia Limited                 ADRS INFORMATION                              
                                                                                           
    16/F., Methodist House                                                                 
                                                                                           
    36 Hennessy Road, wanchai                US Exchange: OTC                              
                                                                                           
    Hong Kong                                Symbol: ZHEXY                                 
                                                                                           
    Tel : 852-2117 0861                      CUSIP: 98951A100                              
                                                                                           
    Fax: 852-2117 0869                       ADR: H Shares 1:10                            
                                                                                           
    PRINCIPAL BANKERS                        REPRESENTATIVE OFFICE IN HONG KONG            
                                                                                           
    Industrial and Commercial Bank of China, Suite 2910                                    
                                                                                           
    Hangzhou Jiefang Road Subbranch          29/F, Bank of America Tower                   
                                                                                           
                                             12 Harcourt Road                              
                                                                                           
    Shanghai Pudong Development Bank,        Hong Kong                                     
                                                                                           
    Hangzhou Branch                          Tel : 852-2537 4295                           
                                                                                           
                                             Fax: 852-2537 4293                            
                                                                                           
    H SHARE REGISTRAR AND TRANSFER OFFICE                                                  
                                                                                           
                                             WEBSITE                                       
                                                                                           
    Hong Kong Registrars Limited                                                           
                                                                                           
    Room 1712-1716, 17/F, Hopewell Centre    www.zjec.com.cn                               
                                                                                           
    183 Queen's Road East                                                                  
                                                                                           
    Hong Kong                                                                              

    -------------------------------------------------------------------------------------------------------------------------------------
    Note : To view the full set of the Company's 2016 Interim Report. Please visit 
    http://www.zjec.com.cn/
    -------------------------------------------------------------------------------------------------------------------------------------
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