Net Profit Amounts to RMB 1.55 billion

(Hong Kong, 18 March 2016) The Board of Directors ("the Board") of Shenzhen Expressway Company Limited (“Shenzhen Expressway ", or the “Company”; Stock Code: 00548.HK) is pleased to announce the results of the Company and its subsidiaries (collectively the “Group”) for the year ended 31 December 2015 ("the Year" or “FY2015”). Shenzhen Expressway recorded revenue of approximately RMB3.42 billion in 2015. Net profit was RMB1.55 billion and the earnings per share was RMB0.712. The Board recommended the payment of a final dividend of RMB0.34 (tax included) per share in cash for 2015.

In 2015, the Group recorded net profit attributable to owners of the Company (“net profit”) of approximately RMB1.55 billion, representing a YOY decrease of 29.0%. During the Reporting Period, the Group has obtained effective control over Qinglong Company and Consulting Company and thus generated an investment income of RMB900 million. In addition, as the operational performance of Qinglian Expressway was under expectation, made impairment provisions for the concession intangible assets of Qinglian Expressway and the carried amount of deferred tax assets with deductible losses of Qinglian Company，the total net profit has been reduced by approximately RMB390 million. After excluding the effect of the abovementioned investment income and impairment loss, as well as the gains on disposal of assets of the Toll Free Section of Meiguan Expressway recognised in the corresponding period of last year, the net profit recorded a YOY decrease of 5.1%. This was mainly due to a significant YOY decrease in profit from entrusted construction management services during the Reporting Period.

During 2015, the Group recorded revenue of approximately RMB3.42 billion, of which toll revenue amounted to approximately RMB3.01 billion representing a YOY increase of 0.2%, as the main source of revenue of the Group. Qinglong Company had been consolidated into the Group’s financial statements since 30 October 2015 and had contributed toll revenue of RMB106 million during the Reporting Period. After excluding the effect of such factor, the Group recorded a YOY decrease of 3.3% in toll revenue, mainly due to the cancellation of toll collection for the Toll Free Section of Meiguan Expressway since 1 April 2014 and the fact that Qinglian Expressway, Yanpai Expressway and Yanba Expressway were affected by diversion by road networks, leading to respective YOY decreases in toll revenues. Benefitted from the organic growth of traffic volume, maintenance of neighbouring road sections and proactive marketing campaigns, the operational performance of other ancillary toll highways have all achieved considerable growth.

In 2015, the Company and the Shenzhen government had entered into an agreement on the toll adjustment of Nanguang Expressway, Yanpai Expressway and Yanba Expressway in compliance with the market principles. It will enable the Company to improve its financial position and enhance its ability and provide rooms for business expansion and exploration of new industries. The Company will also step up its effort in acquiring main business projects and developing new industries, with a view to improve its asset structure for long-term development as a whole and achieve new industry layout as soon as possible. During the Reporting Period, land use right transfer contracts had been signed as scheduled on Meilin Checkpoint Renewal Project Land Parcels and obtained the land use right of the land parcels. The Company is conducting industry policy research in depth, exploring the methods for value realisation and liquidation of the land, as well as promoting the introduction of cooperation parties, so as to realise the commercial value of the project in time. The Outer Ring Project also obtained effective progress. The Company and the government authorities eventually reached a consensus on matters relating to the investment, construction and management of Outer Ring Project, which will be developed and constructed by using PPP mode. It will provide quality service to the public in the most cost-effective way, thereby realise a win-win situation for the public, the government and the Company, it also reflected the core advantage of the Group’s toll road business. (The abovementioned proposal is subject to the approval at the general meeting.) During the reporting period, the Group obtained effective control over Qinglong Company and Consulting Company by acquiring an additional 10% interests in Qinglong Company and amending Consulting Company’s articles of association. Obtaining effective control over these two companies, it will in return help improve the profitability of the Group in the future and further consolidate the core advantages of the Group in respect of investment, management, and operation of highways. In addition, the Company also subscribed an additional 382,000,000 shares issued by Bank of Guizhou, representing 4.15% of the total share capital of Bank of Guizhou after the capital increase. Given the strong cash dividend capacity and there is much room for future development of Bank of Guizhou, the subscription of the additional shares issued by Bank of Guizhou will optimise the Company’s asset allocation in pursuit of sound synergy for its subsequent infrastructure investments and operations in relevant regions.

In 2015, with a steady operating cash flow and solid financial position, the cost of services of the Group recorded a YOY decrease of 1.6%. After excluding the effect on the change of scope of consolidation, the cost of services recorded a YOY decrease of 14.3%. Due to the decrease in the Group’s average borrowing scale and capital costs during the Reporting Period, the Group’s financial expenses represented a YOY decrease of 11.6%. In 2015, the Company stepped up its efforts in exploring multi-level and multi-channel financing instruments of capital market, as well as improving the domestic and overseas financing channels and the centralised management platform for cross-border funds. The Company issued medium-term notes in the amount of RMB900 million bearing fixed interest with a term of 3 years in August and arranged repayment of debts of RMB4.17 billion. These were carried out in an effort to continue to optimise the capital structure and lower the composite capital costs of the Company, thereby providing financial reserves for the development of the Company.

In a long period of time in the future, toll highway will still be the core business and profit source of the Group. However, as the operation period of toll highway is limited, declining investment returns of toll highway projects is a problem that we have to deal with. In the future, while the Group continues to strengthen and enhance its core advantage in toll highway, the Group will capture the opportunities of market development for infrastructure construction. Leveraging its existing resources and core competitiveness, the Group will actively explore and implement new industrial investment by making full use of its innovative capability of business models in investment and financing fields and by gathering and integrating its resources, thereby ultimately realising healthy development of the Company in the long run and enhancing its value for the shareholders.

Appendix I: 2015 Annual Results Highlights

Appendix II: Basic Operating Statistics of Toll Highways during the Reporting Period