Net Profit Amounts to RMB742 million Representing a YOY Increase of 20.63%

(Hong Kong, 18 August 2017) The Board of Directors ("the Board") of Shenzhen Expressway Company Limited (“Shenzhen Expressway”, or the “Group”; Stock Code: 00548.HK) announced the interim results of the Group for the six months ended 30 June 2017 (the “Reporting Period”). During the Reporting Period, the Group recorded revenue of approximately RMB2,108 million. Net profit was approximately RMB742 million and the earnings per share was RMB0.340.

During the first half of 2017, the Group’s net profit recorded a YOY increase of 20.63%. This was mainly due to the income growth recorded by the toll highways operated and invested by the Group during the Reporting Period and the revenue contributed by newly acquired projects.

During the Reporting Period, the Group recorded a YOY increase of 2.19% in revenue. Excluding the effect of de-consolidating the Consulting Company from the Group’s financial statements, the Group recorded a YOY increase of 9.37%, which was mainly due to the growth of toll revenue of the existing ancillary toll highways and the revenue contributed by the consolidation of Shenchang Company (Changsha Ring Road) and Yichang Company (Yichang Project), in which toll revenue of RMB1,957 million, as the main source of revenue of the Group, representing a YOY increase of 10.83%. Revenue from other businesses includes entrusted management services, Guilong real estate development, advertising etc.

During the Reporting Period, the Group’s cost and expenses kept under control. The Group’s cost of services recorded a YOY decrease of 4.29%. After excluding the effect of the change of scope of consolidation in respect of Consulting Company, Shenchang Company and Yichang Company into the Group’s financial statements, the cost of services recorded a YOY increase of 4.67%, which was mainly due to the YOY increase in the depreciation and amortisation expenses of ancillary toll highways during the Reporting Period. The Group’s general and administrative expenses almost unchanged as compared with the corresponding period of last year. The Group’s financial expenses representing a YOY decrease of 13.50%, which was mainly due to the YOY increase in exchange gains from USD debentures arising from RMB appreciation during the Reporting Period.

During the first half of 2017, the Group accelerated the pace of consolidating core business. Earlier this year, the Group entered into an equity transfer agreement with Shenzhen Pingan Innovation Capital Investment Company Limited, to acquire its 100% equity interest in Hunan Yichang Expressway Development Company Limited at a consideration of RMB1.27 billion, and further strengthen its core advantages in the investment, management and operation of the highways.

While consolidating and enhancing the main business of toll highway, the Group has obtained very positive results in the expansion of environmental protection industry. In April 2017, the Group shall subscribe for 15% registered capital in Shenzhen Water Planning & Design institute Company Limited (“Water Planning Company”) upon completion of the capital injection. Shenzhen Expressway Environment Company Limited, a wholly-owned subsidiary of the Group, entered into the Equity Transfer Agreement with Chongqing Water Asset Management Company Limited (“Water Asset”), pursuant to which, Environment Company acquired 20% equity interest in Chongqing Derun Environment Company Limited (“Derun Environment”) from Water Asset at a consideration of RMB4,409 million in May 2017. The acquisition of Water Planning Company and Derun Environment is an important layout for the Group to realise the synergetic growth of new industries’ scale and efficiency by building the second main business and forming a new industrial pillar, and highlights the Group’s determination to expend new industries.

The Group’s management said that, as the government exert great efforts in promoting the strategy of regional economic development and urbanisation, it also expand the cooperation of the “One Belt, One Road” strategy, implement the plan for the Guangdong-Hong Kong-Macao Greater Bay Area. These factors will provide new opportunities for the Group to develop toll highways and other urban and transport infrastructure business. The Group will continue to consolidate and enhance the toll road main business, while further integrating resources and leveraging on the capacity of innovating financing business models. Relying on the capability of resource integration, the Group will actively promote and implement new industrial investment, in order to eventually realise long-term healthy development and create more value for shareholders.

Appendix I: 2017 Interim Results Highlights

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